Similarities Between Karl Marx And Adam Smith

During the nineteenth century, Karl Marx and Andrew Carnegie had definite opinions about the affects of industrialization on society. A greater understanding of their views on history and humanity can be gained by comparing and contrasting two written artifacts: The Communist Manifesto and “Wealth.”

Karl Marx (1818 – 1883) was a revolutionary German economic theorist and communist with many publications on sociology, economics and politics. Many of his writings can be used and applied into the media. Marx stated that in prehistoric times, people had no concept of private ownership, and everything was shared freely. There was no government to rule over everyone, but small tribes of people who each had their own leaders. This was known as primitive communism. As time went by, people became greedy and craved wealth. Private ownership of land led to the class system developing, with the upper class owning the land that the lower classes lived on and worked off. This became the feudal system, which was headed by a king. This system suited the upper class however it also meant that the lower class was always kept at the bottom, with no way of moving up from their positions. Industrialisation in the 1700’s meant that power in society fell into the hands of the wealthy, as they owned the land and had the money to build factories,

Smith and Marx agree upon the importance of capitalism as unleashing productive powers. Capitalism is born out of the division of labour... that is, it is made possible by dividing jobs up into simple tasks as a way of increasing efficiency. By increasing efficiency, then everyone can produce more than they personally need. The extra produced can go towards the accumulation of capital, (machines, more land, more tools, etc) which will allow for even more increased efficiency and production. Both thought that this increased production was great. But Marx said that capitalism was only one stage... that every country must go through capitalism, to get that increased production, but that capitalism is

Karl Marx believes that a capitalistic society separates the rich from the poor. corporations that holds the money hold the power to dictate whether certain fucntions of society.

As far back as man has been on earth, he has been driven towards building a community among his peers. Whether that is a community of hunters and gatherers who share whatever the day has brought to them within their tribe, or a larger community which within its structure lie the inner dwellings of division of labor and societal classes. Adam Smith (18th Century), John Stuart Mill (19th Century), and Karl Marx (19th Century) are of the same cloth, but in modern terms their community is referenced as a government, and they each have their own distinct opinions on the 'drive' instilled within human nature that shape their personal economic theories. I will be dissecting the views of each of these economists, in regards to the role of

While she centralized her perspective at the University of British Columbia, it was at the same time she rediscovered the ideology of Karl Marx. She said that while attending the London School of Economics she had learned the teachings of his work with a distorted interpretation. Smith was influenced by Marx’s writings due to the notion of his ideology about politics and the ideas and images of the ruling class and how they become the dominant ones in our culture because the people ruling also own the productive apparatus of society.

Modern economic society can be described as a combination of certain points from several theories combined into one. Changing dynamics and economic needs of nations has spawned a development of various, and contrasting, economic systems throughout the world. Perhaps the two most contrasting philosophies seen in existence today are that of capitalism and communism. The two philosophers most notably recognized for their views on these economic systems are Adam Smith and Karl Marx. This paper will identify several fundamental aspects of economic philosophy as described by Smith and Marx, and will compare and contrast the views of these

Adam Smith and Karl Marx are both famous for their philosophies on economics, more specifically the division of labor. For each of them the division of labor is rather similar in its definition, but the outcome of the division of labor differs drastically from Smith to Marx. For Smith the division of labor leads to mass production and allows large amounts of people to get things that were once available only to the rich. Smith believes that small specialized tasks leads to the invention of new technologies, and that individuals working selfishly to better themselves in the capitalistic world is beneficial to everyone. For Marx the division of labor is more about the relationship between the employee and the employer. He believes that

Karl Marx and Adam Smith wrote in the same time period – during the industrial revolution, where the bourgeois had risen to power by oppressing and exploiting the proletariat. The term bourgeois refers to the people in the class of modern capitalists, owners of the means of social production and employers of wage labor. The proletarians are the people in the class of modern wage laborers who, having no means of production of their own, are reduced to selling their labor power in order to live. While Smith, in his Wealth of Nations, wrote in favor of capitalism, Marx, in his Communist Manifesto, was a harsh critic of the system and declared its inevitable destruction and consequent rise of the working class.

Karl Marx on the other hand, has a wildly different opinion on property. In his most famous piece, The Communist Manisfesto, Marx’s opinion is set up in one line; "… the theory of the Communists may be summed up in the single sentence: Abolition of private property” (Marx in Cahn 885). Marx firmly believed that ownership of private property was a way in which the social classes became more divided, and in turn, a way to oppress the poor. His opinion largely stems from the time period in which he lived (1818-1883), where factory owners infamously underpaid employees for dangerous work in treacherous conditions. However, Marx idea of private property was a bit different from Locke and did not mean things like land ownership or personal items, but the relation of individuals used for the means of production in a privately owned enterprise. Marx points out however, that in this state, unlike the ideas and time of Locke (1632-1704), the laborers do not benefit or acquire any property from their labor. In fact, the capital they are producing is the “kind of property that exploits wage labor” (Marx in Cahn 886) and serves to oppress them and further the division of classes. Therefore, Marx aimed to take this “private property” and give it to the Proletariats in order to change its status from the elite ownership of the Bourgeoisie, to the

Adam Smith was a British economist and philosopher who lived in Britain from 1723 until his death in 1790. His writings in The Theory Of Moral Sentiments (1759) and The Wealth Of Nations (1776) were the foundation of the modern capitalist system, and were wrote during- and in the wake of- the collapse of feudalism . During the era of feudalism, strict class structures allowed the upper class nobility to exploit the proletariat for the pursuit of profit, with poor working conditions, low wages and decreased quality of life for workers and their families as consequence. Smith believed that the alleviation of poverty was the key to economic success, and essentially developed the ideas in the

Adam Smith and Karl Marx both came from very different worlds, however they saw the world in similar ways. Both had thoughts derived from different views. Smith had a very capitalistic view on things, while Marx was socialist in many ways. They expressed their thoughts in ways that were surprisingly similar while other ideas were dissimilar. Ultimately socialism and capitalism can go hand in hand. One main idea that both works addressed was the productivity of work and the ability to accumulate property, stock and capital. They both wanted a wealthy nation but Marx believed that redistribution of wealth was the way to go. Smith believed in a free economic system that gave capitalists rights to accumulate their wealth.

There is perhaps not a more famous ongoing dialectic argument in the field of political economy than the one between Adam Smith and Karl Marx in regards to capitalism. The two thinkers, although coming to radically different conclusions about the outcomes of the capitalist system for all parties involved, agree on a surprising number of ideas such as labor being the source of commodities’ value, as well as the fact that the division of labor increases productivity. However, their different conceptions of what determines the price of a commodity, the driving force behind and the effects of the division of labor, and the purpose of the capitalist system have widespread implications that cause their holistic arguments to diverge considerably.

In the conceptualization of the predominant 19th century political thought process, none- if any- were more influential than John Stuart Mill and Karl Marx. Both were philosophers, sociologists, economists and political thinkers, but each held unique views towards the ideal government, to freedom, and to the impact of the industrial revolution. Each discussed some of the ramifications of the industrial revolution, and the ways in which the government can be re-aligned for greater social prosperity. John Stuart Mill (1806-1873) advocated for Liberalism, a system in which liberty and equality would remain at the forefront of all political proposals, and representative interests. Mill celebrated individuality, and the ability to not conform to a higher power. In contrast to Mill, Karl Marx (1818-1883) was a revolutionary socialist who advocated for a complete social revolution throughout society, in an effort to counter the ill perceived effects of capitalism. Marx’s central tenet relied upon the fact that he sought to abolish private property, and monopolies, so as to enable all individuals to acquire an equitable means of living. Marx’s belief was that capitalism forces the economy into constantly being exploited, which in turn leads to recessions. Mill believed that all power should be allocated to the individual; whereas Marx believed that bestowing such power within a socialist regime would allow for the creation of a truly egalitarian society. This paper will analyze how

A nation is just a vast establishment, where the labour of each, however diverse in character, adds to the wealth of all. Two brilliant people of their time are both respected in their views for creating a near perfect society where everyone is happy. Adam Smith, a respected Scottish political economist philosopher born in 1723, had the goal of perfect liberty for all individuals through the capitalistic approach. While Karl Marx, born in 1818, believed in individual freedom for society and intellectually criticized capitalism giving reasons as to why it was irrational and why it would fail. Adam Smith’s very first sentence claims that, "The greatest improvement in the productive powers