Adam Smith vs. Karl Marx

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

“It is not from the benevolence (good heartedness) of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.” 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

The Communists openly declare that their ends can be attained only by the forcible overthrow of all existing social conditions. Let the ruling classes tremble at a Communist revolution. The proletarians have nothing to lose but their chains. They have a world to win. Workingmen of all countries, unite!” - Karl Marx