In Studying The Effects Of Capitalism, It Is Important

1593 WordsMay 1, 20177 Pages
In studying the effects of capitalism, it is important to look at both Karl Marx’s The Marx-Engels Reader and Wealth of Nations by Adam Smith. Marx, a German economist, historian and philosopher, wrote about economic struggles in the sense that those with the most take advantage of those with the least. Adam Smith, a Scottish economist and philosopher, wrote about individual freedom and limited government. The communist opinions of Marx have long been criticized by many philosophers, especially Smith. In The Marx-Engels Reader, Marx discusses how capitalism forms separation of people through the form of alienation from themselves and their labor whereas Smith believes that liberal capitalism provides ultimate individual freedom and in…show more content…
It belongs to another; it is the loss of his self.” (Tucker 74). The more time that the worker spends on the product, “it is clear that the more the worker spends himself, the more powerful the alien objective world becomes which he creates over-against himself” (Tucker 72). This type of work is a made for a machine, not a human being. Smith saw the benefits of liberal capitalism, and was an avid critique of Marx’s views on capitalism. The first chapter of Wealth of Nations, Adam Smith claims that the economy starts with the human "propensity to truck, barter, and exchange one thing for another.” (Smith 27). Smith argues that although acts of buying and selling were motivated by individual needs, they were ultimately good because of the needs of supply and demand. He says that a producer of a product is not going to sell his product for less than a profit, but he has to come to a compromise so that customers will buy his product. Just as consumers are not thinking about the seller, and only buy if the price is reasonable for them as a consumer. By purchasing the product they are contributing to the wealth of the seller, but they ultimately are acting in self-interest when buying the product. Smith says that everyone benefits in the end. Unlike Marx, liberalism is ultimate
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