ADAM SMITH

&
KARL MARX

The upper-middle class of businessmen, industrialists and bankers became a

strong political power that supported the laissez-faire policies, created by
Adam Smith. This group of people didn’t want the government to
intervene in their companies and businesses.

He wanted the Laissez-Faire policies to remain. They believed that

competition was necessary for progress. He also thought that charity,
MADA

education and business was better lived for individuals and that the
government should only provide military and protection for properties. As
well they should not intervene to solve social and economic problems.
He wanted the economy to be free from government interference of
any type. This is because he thought that with these policies, the economy
would rise and have a better functioning.

He was supported by the working classes (proletariats). They did not agree
LRAK

with Laissez-Faire policies or capitalism, instead, they believed in socialism,

a political system in which the means of production, distribution and
exchange are owned by a community as a whole. This included the
intervention of the government, which meant better working conditions
for this class.
He saw “Laissez-Faire” policies with suspicion. While the wealthy were
becoming more successful through individualism, the conditions for those
who lived in poverty were everytime worse. They believed that the
proletariats were the creative minds and the support for the bourgeois
economy.
He wanted the government to be involved in the bourgeois businesses to
prevent corruption or embezzlement, and the social status’ to disappear in
order to have equality. This last one included providing better conditions
for those who belonged to the working class (proletariats).

CONTRAST
Adam Smith believed that maximizing
the own profit would result in a state
of equilibrium. He thought that the
economic development was better in
an environment of free competition
that worked in relation with the
“natural laws” stated by him. Smith
wanted the wages to be determined
by the market, and the companies to
be free rather than having
governmental restrictions. On the
other hand, Karl Max had a different
point of view about economics. Karl
thought that capitalism led to
inequality, and the idea of
competition caused ambition for
wealth. As well, it would also cause
instability and injustice among
society. He saw exploitation as a
situation where the individuals are not
being benefited from his needs.
COMPARE
Although Smith and Marx had
opposing points of view towards
the way in which the American
economy should work, there were
some common points that linked
their ideologies. Adam Smith was
an economist, as well as Karl
Marx, therefore, they both had an
amplified knowledge of the USA's
economy, and of all of its
problems and concerns. On the
other hand, despite their different
thinking, they both wanted to
raise the economy and make it
more successful.
 DAILY NEWS
Adam and Karl - Different positions - Economic problems
April 19, 1852
It is April 19 of 1852 and war between the economists Karl Marx
and Adam Smith has been declared. These two, with different
positions and different ideologies, have only one purpose: to
improve the economy of the country. Karl Max, an honorable
man, who only wants the good for society, believes that if the
government is more envolved in the country's economy,
proletarians will be able to have better working conditions, and
capitalism would not reign over all, as well as "Laissez-faire",
which will not continue. On other hand, Adam Smith, a capitlist
business man, fully supports laissez faire, this means: doesnt care at
all about proletaries (factory workers). Aside from that, he doesnt
want the government to intervine in any kind of way in the
country´s economy, suspicious huh? The reasons he gives are that
economy will grow and have a better functioning without these
limitations. The cruel reality is that behind this "reasons" there is a
whole system of corruption. This can be seen in the poor working
conditions provided to their employees, in the same way, having
production hand at a more economical price, thus being able to
raise the prices of their products, earn more capital to the point of
buying different companies (competition with the same product ),
generate a trust and then be the only company in the market with
a specific product generating a monopoly chain. So having control
by the government over economy will unbenefit him since all this
process will be changed and he could not earn and controll al the
money he wants.

CRITICAL THINKING REPRESENTATION

Our economy is succesful just the way it's

structured. There is no need for the government
to intervene on our private businessess.

! ? !
? ?

What are you talking about Smith? You know

that is not the right way to be successful

Done by: Gabriela Jiménez, Valeria Velásquez and

Ana María Rocha