Post on 02-Jan-2016
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Adam Smith vs. Karl Marx
Kempton & Patten
Global History II
Mepham High School
Adam Smith
The father of Capitalism.
Book - 1776, The Wealth of Nations.
What is Capitalism?
An economic theory where individuals control the means of production and the markets set the prices.
Beliefs of Smith
Laissez-faire: Government should keep its “hands off” business.
Competition and Incentive.
The Invisible Hand: Prices would be set by “market forces” meaning the consumer.
Elements of Capitalism
Property Private
Government Regulations Minimal
Safety net for those who fail None
Control of the Means of Production
Private
““It is not from the benevolence It is not from the benevolence (good heartedness) of the (good heartedness) of the butcher, the brewer, or the butcher, the brewer, or the baker that we expect our baker that we expect our dinner, but from their regard to dinner, but from their regard to their own interest.” their own interest.”
Adam Smith.Adam Smith.
Karl Marx
An Industrial Revolution era philosopher who supported the rights of the proletariat.
Book – 1848, The Communist Manifesto.
What is Communism?
It is characterized by state control of the economy, and restriction on personal freedoms.
Beliefs of Marx
History is the history of class struggle Haves vs. Have Nots
The workers must unite to overthrow the owners
Shared ownership (no private property)
The workers control the means of production.
Elements of Communism
Property Shared
Government Regulations Maximum
Safety net for those who fail Yes
Control of the Means of Production
Government/People