Karl Marx And Lenin Were Influential Figures And Economic Thinkers

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Essay for Week 5
Adam Smith, Karl Marx and Lenin were influential figures and economic thinkers whose ideas have affected the world’s economy for many generations and in many ways. They all had expressed their analysis and theories of Capitalism in their past works. However, the dynamics of capitalism in their theories change; and their views on whether capitalism is optimal or not also differ. The next paragraphs will examine how each thinker evaluates capitalism, their reasons and influences on modern economic thinking.

Adam Smith is considered “the father of capitalism” who theorizes about the nature of Capitalism in his renowned work “The Wealth of Nations”. Smith advocates for a system where “every man for himself” and stressed the importance of a free-trade economy where sellers can charge prices as high as they want and every actor in the market tries to maximize his or her own benefit. In this type of market, sellers would not sell for less than their cost and buyers would not buy for more than the value of their benefit derived from consuming the good. With this proposal, he introduces the concept of the “Invisible Hand” which makes this system of capitalism idealistic where the market is always in equilibrium with no surplus or shortage and with maximized benefits for both consumers and producers. Smith also believes in small government role or laissez-faire approach because to him, free market itself and people pursuing their “greatest value” is already effective…

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