Adam Smith vs. Karl Marx
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