ipl-logo

Keynes Vs Adam Smith

752 Words4 Pages

The great economists as we know, Adam Smith, Karl Marx, and John Maynard Keynes, were simply brilliant in each of their own ways. Although each economist had differing opinions, each of their opinions are now questioned and relevant to this day. One economist, Adam Smith, is known as the “father” of economics. He is greatest known for this title due to the simple fact that he is the first theorist or economist to relate his ideas to human behavior and how people’s minds work. Smith’s outlook on the economy was all about pro-capitalism meaning that the investments of production, distributions, and the exchange of wealth is all made and kept maintained by private ownerships, individuals, or corporations. Smith put a lot of focus on the idea …show more content…

Smith saw the world and the market in a positive way, one that could continue to grow as long as it was laissez-faire. Marx did some what agree to what Smith had to say, but continue to only see the negative side of the market; in which is the struggles in the market, but more specifically the social classes. Marx sees the capitalist government as, “a process full of pitfalls, a process in which crisis or malfunction lurks at every turn.” as stated in the text. With Karl, nothing is ever set and assured as in what Smith theorized. Beginning the different social classes is a direct effect of what Marx theorizes as a down fall. Although the business may increase at a slow rate, with a steady increase comes more problems that mess up the entire economy, then causing the businesses to crash as well. Also, due to the increase of business, small business as what Smith may refer to as a laissez-faire run government, will be overtaken by the growth. Marx ideas may be true, because recent studies may confirm his theory even though it has not been 100% confirmed to be right. For example, “in 1800, 80% of Americans were self-employed; today the figure is 10%.” This all means that the capitalist government is growing and in doing so, is taking over non capitalist areas. As both Smith and Marx did agree on, but had different views on how the spectrum would continue to

More about Keynes Vs Adam Smith

    Open Document