Adam Smith And Karl Marx

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Derek Ding Economy Ms. Walsh Period D Adam Smith and Karl Marx Adam Smith and Karl Marx are famous for their influential and prominent theories about economics. Two difference thoughts indeed are contributions that can change the world. In Adam Smith 's “Inquiry into the Nature and Causes of the Wealth of Nations”, he introduced an idea where producers work in ways they want and get paid by how much work they put in. In other words, they can set up prizes that they think fit the work. On the other hand, the consumer also can evaluate the goods and decide how much they are willing to pay for those goods. “People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices.” (Wealth of Nation) This economic system would result in the most efficient and desirable economic outcome for both consumers and producers. “Man is an animal that makes bargains: no other animal does this - no dog exchanges bones with another.” (Wealth of Nation)This economic system encourages people to make deals with each other since they all can get maximum benefit from deals. In this "perfect" economy, there would be no addition or insufficient supply or demand; people in markets would always have equal rights and opportunities. However, governments would not have much involvement within this economic system. Karl Marx in his “The Communist Manifesto” reasoned that

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