Summary:
A comparison between Adam Smith's arguments for a free-market economy and Karl Marx's arguments for communism. Both individuals sought to attain a stable economy and government and to reduce class tensions by ensuring a larger middle class. While Smith and Marx supported completely different approaches to achieve these ends, neither of their proposed systems proved to be completely infallible.
While it may seem as if capitalism and communism are complete contradictions of each other, they do have some similarities along with their many differences.
Both Adam Smith and Karl Marx hoped to attain a stable economy and government through their separate systems. They both wished to reduce class tensions by ensuring a larger middle class. However, each went about it in very different ways.
In his ideas on capitalism, Smith believed that by leaving government completely out of the economy, people would be driven to work hard in order to make a living. He believed that "an invisible hand" would ensure the success of the economy, and that the system would be guaranteed because of human nature. If work got too difficult or the pay was too low, he reasoned that workers would not be tolerant. This system would enlarge the middle class and greatly decrease tension between the wealthy and poor.
Marx took a completely different perspective, perhaps because he grew up as one of those who did not profit from the economy. With communism, he judged that the government should own everything, including housing, utilities, means of production, and factories. He reasoned that if government owned everything and provided for everyone equally, there would be no factions within the political spectrum and no need to vote. Government would provide a safety net. If one could not work because of an injury or other reason, the government could still provide for them. Government would not allow children to work in factories, but rather provide public schooling at no cost to the parent. In addition to thinking that factory work was too dangerous for children, Marx believed that if everyone were educated, many of the problems in his society could be eliminated.
Unfortunately, neither of these systems was completely infallible. While capitalism does make certain that class tension is almost eradicated, there are still sure to be losers. Also, pure capitalism does not account for those who cannot work anymore, for whatever reason. Communism simply could not work due to a lack of incentive combined with human nature. Why would one work when they receive the necessities of life whether or not they work?
The best system, then, might be a combination of the two. If government codes were instigated to prevent mistreatment of employees, and a safety net instated to protect those who could not work, a government as near to perfect as we humans can get may be created.
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