Adam Smith vs. Karl Marx
Kempton & Patten
Global History II
Mepham High School
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
Private
“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