Among the most influential and noticeable economists of the last few centuries, Adam Smith and Karl Marx are well known for their distinct theoretical contributions. They both were economic philosophers.
Karl Marx, a German philosopher is one of the most divisive figures of the twentieth century who believed in communism. He supposed that everyone’s lives should be organized by the state with certain free accommodation, health services and education. He thought that capitalism would create some internal problems. Marx wrote a book called ‘‘Communist Manifest’’ which enlightens the goals of communism.
Adam Smith was a Scottish philosopher who believed in capitalism and is known as them father of modern capitalism. Smith’s explanations of market forces and the role of the state in economics have shaped our capitalist economic system today.
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Although they were different in political theory, they shared some similarities; though much of their philosophy has been debated and replaced by the Austrian School of Economics, there are points of value to both Adam Smith’s and Karl Marx’s theories.
While Adam Smith competed that the most ideal economic system is capitalism, Karl Marx thought else. Marx strongly obeyed to the idea that capitalism leads to greediness and inequality. Smith did not put the attention on the properties or the riches of the aristocracy like Marx. Smith explained on how an individual could gain economic benefits equal to his effort and thus adds to an economy’s aggregate wealth. He believed that in a free market economy, an individual would be able to earn and spend in a market freely, and it would allow a worker to act as a consumer as