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Adam Smith's Idea Of Capitalism

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Capitalism, the most powerful form of economics the world has ever seen. “Capitalism knows only one color: that color is green; all else is necessarily subservient to it, hence, race, gender and ethnicity cannot be considered within it” (“Thomas Sowell”). Capitalism was designed by Adam Smith in hopes of making a free market system, meaning everyone has the opportunity to succeed by simply created something that will have some kind of demand. Adam Smith first thought of his idea in the late 1700s. He published a book that had all of his ideas of his ideal economic system that would work and make countries the wealthiest they could be. His main principle revolved around the production of goods.
Capitalism, when broken down into other categories has been around for quite some time, even if it wasn’t officially …show more content…

The ideals of capitalism are very easy to understand; free market place, hard work, and financial opportunity. Implementing something where “everyone from each state would give what they could, based on their status” (Smith) made for much more support to the government. In many cases, governments would like having this system for that reason, having citizens give back from what they made. Smith articulately guided the principle of freedom. It was by far the most important thing he could say to make his idea stand out from the other ideas. A majority of citizens, and even governments looked at the principles and made the decision to support it. The people understood that they had the option to choose their own success and be able to do what they please as an entrepreneur. In turn, capitalism began to take over the world for that reason. Privatizing companies and having single individuals own huge companies showed the power of capitalism and how following the principle of hard work could make you

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Influential economic thinkers like Adam Smith had their own solutions to the problems. Smith popularized the idea called capitalism. In The Wealth of Nations, Adam Smith discusses a free market that included little to no government intervention. The government’s only role in the economy was to aid consumers. Moreover, society should focus on benefiting the consumer.

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Adam Smith and Karl Marx are amongst the most influential economists of the last few centuries and are noted for their revolutionary contributions to the world of economics. While Adam Smith is known as an advocate of the capitalist school of thought, Karl Marx is recognized as the father of a politically opposing economic system: Communism. Although both these notable philosophers vastly contributed to the field of classical economics, their ideologies have always known to clash with one another. While Smith proposed the idea of the free market system where all individuals were given the liberty to follow their competitive nature and produce goods without any government intrusion, Marx strongly opposed the idea of a laissez-faire society and believed that Socialism would ultimately replace Capitalism. Marx believed that the capitalist system was inherently flawed since it was meant to only profit the rich and exploit the poor.

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