Adam Smith And Karl Marx

973 Words Mar 10th, 2016 4 Pages
Adam Smith and Karl Marx were two economic philosophers who each introduced revolutionary ideas concerning economic systems, and their effect upon social progress and prosperity. Smith proposed an economic system, known as capitalism, in which a laborer 's wage is wholly relative to their contribution to increasing the means of production; productivity is capitalism 's main objective, as it inevitably results in increased profit and revenue. Conversely, Marx proposed an economic system, known as communism, which advocates for the equal distribution of wealth among the owners of the means of production, and their laborers, in an effort to stimulate fair and sustainable wages.
A hypothetical situation arises in which, Western nations show interest in the valuable natural resources of a Pacific island, inhabited by people who have already established their own economic system and patriarchal social norms. Concerning the economic welfare of the inhabitants, the potential value of the resources, and the wealth of the newly discovered nation, Marx and Smith would respond to the situation with the same conclusion: the inhabitants should not allow Western nations to access and capitalize upon their natural resources. Although both philosophers agree about discouraging external influences upon the island 's economic structure, the motivating factors behind each 's decisions differ. Smith would discourage external influences in favor of the inhabitants capitalizing upon their natural…

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