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Adam Smith Research Paper

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You may be asking yourself, what is a economic system? Or even an economy? Of course “economy” is one of those loaded terms that get thrown around a lot by politicians and
CNN, but do we really even know what it is? According to Business Dictionary, Economy is defined as: “An entire network of producers, distributors, and consumers of goods and services in a local, regional, or national community. ” So In other words, any economy is absolutely everything that relates to finances. People that sell, People who buy, what you sell and buy, how its distributed, etc. Now, an economic system, is how that network is organized, or in the words of Austin Powers, its mojo. The way it runs, its rules, etc. Without it, economies would be chaos.
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Capitalism, Marxism, and Traditionalism are some of the three not common among the world today.
Capitalism was made first imagined late in the eighteenth century, by Adam Smith, with his work “An inquiry into the Nature and Causes of the Wealth of Nations” which introduced the
Capitalist theory. Adam Smith was a very selfish, greedy man, which is evident in his theory.
Capitalist theory is where all businesses, trade, and other rules are owned privately. If you are successful, this seems great, more money, power, and freedom for successful, white collar entrepreneurs. If you aren’t, this seems horrific. This theory in application will lead to the separation of the high, and the low class.
It is from this separation that Marxism was created. Karl Marx, was alive during the times of Capitalism. He was frustrated, and was an extremist. Matter of fact he was such an extremist, he created his own theory. Named Marxism, after his last name, in theory works perfectly. It makes sure everything and everyone is treated fairly. Marxism is often compared to communism, because they are identical, with just one difference; Government. Marxism, has …show more content…

Now, that we have some of the most successful economies, lets compare them. I see many similarities between Marxism and a Traditional economy. They are both very laid back, and everyone is treated equally. Capitalism, differs from the two, with the only similarity it shares with them is disregarding the idea of having a central government. Now, out of these three, I believe that a traditional economy would work the best. Yes, it has some serious problems, but I believe its advantages outweigh its disadvantages.
As this paper comes to an end, I would just like to remind you of the three economic choices, and their characteristics. Capitalism sets everything to be privately owned, and pushes the idea of two social classes. Marxism sets the playing field equal, and treats everyone equal in every way. Finally, Traditionalism has no rules, and everything just works out well, because it does. All in all, there are many different factors that separate Capitalism, Marxism, and
Traditionalism. These factors make it extremely difficult to come up with an ultimate best system, especially because they all work differently in application, then in theory. Despite

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