Karl Marx 's Economic Theory Essay examples
Adam Smith Adam Smith, a Scot and a philosopher, after years of observing the world of business affairs came to the conclusion that, “Collectively the individuals in society, each acting in his or her own self-interest, manage to produce and purchase the goods and services that they as a society require.” His ideal of laissez faire economic later on sparked the idea of free market.
Karl Marx Karl Marx believed that capitalism would bring about instability, struggle, and decline, which is why he came up with a new economic theory. According to him, capitalism exploited the working force by being profit-oriented and paying workers extremely low wages. Marx’s economic theory, Marxism, is the system of socialism of which the dominant feature is public ownership of the means of production, distribution, and exchange. Marxism is also the ideology that later spanned into communism. Although the two things are different, one being an economic theory and the other being the application of the philosophy, they still hold similar attributes, such as their principle of distributing a country’s wealth based on the peoples’ needs.
John Meynard Keynes John Keynes believed in government involvement in the economy and thought that the unrestricted capitalism that had existed before World War I and between the two wars had failed. He said that the collapse of global trade, the worldwide unemployment of the Great Depression, and the worst wars in history proved that limited…