Adam Smith and Karl Marx Essay
Adam Smith and Karl Marx
Modern political economic theory and philosophy can be greatly attributed to the works of two men who seemingly held polar opposite views on the subject. Adam Smith, a Scottish philosopher, published his most well known work An Inquiry into the Nature and Causes of the Wealth of Nations in 1776 and is most often associated with the ideas and principles of the political economic system known as Capitalism. At the other end of the spectrum is Karl Marx; the German philosopher most often associated with Communism and the author (or co-author) of The Communist Manifesto. This paper seeks to discuss the core differences in their respective political economic philosophies with regards to what economic value is and what the role of government should be in their versions of political economy. This will conclude with the argument that while Smith's work had laid the foundation for modern economic philosophy, it was Marx who would ultimately leave the most significant impression upon the world with his revolutionary ideas. An Inquiry into the Nature and Causes of the Wealth of Nations (commonly abbreviated as The Wealth of Nations) is considered to be the first full treatment on the study of Economics. This work essentially lays the foundation for the economic system known as Capitalism. Interestingly enough, Capitalism was a term first brought into the public debate, somewhat pejoratively, by Karl Marx himself in describing a "capitalist" as a private owner of capital or the means or production. ("Capitalism" (Wikipedia), 2008). A consensus definition of this idea is an economic system based on private individual ownership of property in which the distribution of goods is determined freely by competing market forces and investments are made by individuals. ("Capitalism" (Merriam-Webster), 2008). In a Capitalist society, individuals are free to own property and invest their capital in the pursuit of profit with relatively limited
Modern political economic theory and philosophy can be greatly attributed to the works of two men who seemingly held polar opposite views on the subject. Adam Smith, a Scottish philosopher, published his most well known work An Inquiry into the Nature and Causes of the Wealth of Nations in 1776 and is most often associated with the ideas and principles of the political economic system known as Capitalism. At the other end of the spectrum is Karl Marx; the German philosopher most often associated with Communism and the author (or co-author) of The Communist Manifesto. This paper seeks to discuss the core differences in their respective political economic philosophies with regards to what economic value is and what the role of government should be in their versions of political economy. This will conclude with the argument that while Smith's work had laid the foundation for modern economic philosophy, it was Marx who would ultimately leave the most significant impression upon the world with his revolutionary ideas. An Inquiry into the Nature and Causes of the Wealth of Nations (commonly abbreviated as The Wealth of Nations) is considered to be the first full treatment on the study of Economics. This work essentially lays the foundation for the economic system known as Capitalism. Interestingly enough, Capitalism was a term first brought into the public debate, somewhat pejoratively, by Karl Marx himself in describing a "capitalist" as a private owner of capital or the means or production. ("Capitalism" (Wikipedia), 2008). A consensus definition of this idea is an economic system based on private individual ownership of property in which the distribution of goods is determined freely by competing market forces and investments are made by individuals. ("Capitalism" (Merriam-Webster), 2008). In a Capitalist society, individuals are free to own property and invest their capital in the pursuit of profit with relatively limited
References: capitalism. (2008) In Wikipedia, The Free Encyclopedia Retrieved December 17, 2008, from http://en.wikipedia.org/wiki/Capitalism capitalism. (2008). In Merriam-Webster Online Dictionary. Retrieved December 17, 2008, from http://www.merriam-webster.com/dictionary/capitalism labor theory of value Retrieved December 17, 2008 from http://en.wikipedia.org/wiki/Labor_theory Marx, K (2000) Das Kapital Gateway Edition, Washington, DC, Regnery Publishing, Inc Marx, K & Engels, F (2006) The Communist Manifesto, New York, Penguin Books October Revolution Retrieved December 17, 2008, from http http://en.wikipedia.org/wiki/October_ Revolution Smith, A (1909) Harvard Classics: An Inquiry into the Nature and Causes of the Wealth of Nations, New York, P F Collier and Son West, E (1990) Adam Smith 's Revolution, Past and Present. Adam Smith 's Legacy: His thought in our time