Karl Marx Vs Adam Smith Research Paper

Every country 's government and economy is separate from others allowing them to run their country how they 'd like. No one country has to be like another, each possessing their own way of going about everyday 's problems and experiences. In order for a country to be successful, they must have a way to produce, distribute, and consume goods and services, meaning a specific type of economy must be in place. An economic system consists of the production, distribution or trade, and consumption of limited goods and services by different agents in a given geographical location. From capitalism to communism, economies can differ greatly from one another. Adam Smith and Karl Marx, two brilliant men in the field of economics, supplied their reasonings …show more content…
Capitalism is an economic and political system where private owners, rather than the state or government, are in control of the country 's industry and trade. This means that the people are allowed to run and operate their own businesses without the discretion of the government telling them what to do and how to do it. Smith believes this is a good idea because it follows natural laws and has a hands-off view on economics, described by the term laissez-faire. With the government intervening with the economy, there would be a divergence from natural laws and in turn force these to become unnatural. When government stays out and allows it to be natural, things work because owners and businesses are constantly in a battle against one another trying to improve their products and make themselves superior over the others. With this economic freedom, people are able to do what they want and fulfill their own wants and needs rather than the government 's. Smith uses the "invisible hand", talking about competition, as the motive for supporting his views against critics who say that capitalism only cause selfish individuals. Because of competition, businesses and companies make sure their products are made at the highest of standards, priced appropriately, and able to profit beyond other companies. If they were selfish and only doing it for themselves, they would not last in this economy and be left in debt. Also, jobs will be created at a high rate because new business are always being created and people always need new