![]() Karl Marx, born in 1818 in Germany, was an influential economist who made a significant contribution to the economic revolution and proposed the ideas of a socialistic economy that could benefit all sections equally.Īdam Smith was born in 1723 and studied at a college in Glasgow. These include the "Wealth of Nations" by Adam Smith, "Das Kapital", and the "Communist Fiesta" by Karl Marx in combination with Frederick Angels Difference Between Adam Smith and Karl Marx in Tabular Form Main Parameters of Comparison It could only allow a continuous vicious cycle of the poor remaining poorer and the rich getting richer day by day.īoth personalities have their theories published in different famous books. In contrast, Karl Marx theorized that capitalism is a society where the segmentation of society into classes would be dividing a community and hence the economy. He did not support an economy that comes under the government. This can lead to an overall better economic outcome. According to him, this type of market would result in the most efficient and desirable outcome for both consumers and producers alike. And the prices in the market were decided by the producers themselves. Karl MarxĪdam Smith proposed the idea of a free market, where producers are free to produce as much as they want. On the other hand, Karl Marx, who doubted Adam Smith's capitalist proposal to cause a significant social decline by dividing them into distinct classes, could only enable a vicious circle where the rich get richer with the exploitation of the lower section and the poor remain poorer. He proposed that firms not be subject to anybody, which would mean greater possibilities for development. The former suggested private ownership with individualized control to be better in maximizing profit margins and, hence, overall economic development. ![]() ![]() Karl Marx is referred to as the father of communism, whereas Adam Smith is known as the father of modern economics.īoth had different perspectives on how an economy could prove beneficial to the producers and consumers. They have an essential role in how the economy is today, although the ideas of both personalities are opposed in one or the other aspects. They are noted for the economic revolution they caused and for their distinct theoretical writings that support it. Amongst the most influential and prominent economists in the world, the most crucial contributions come from Adam Smith and Karl Marx. ![]()
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