1. Adam Smith and Karl Marx were perhaps the most well-known economists of their time, however, their viewpoints on economics and economic development differed to a great extent. Adam Smith is most famous as a founder of the Classical Economics and a strong supporter of economic freedom and trade. Unlike mercantilists, Adam Smith tried to establish principles, which could benefit the whole nation, rather than some individuals. In his book “Inquiry into the Nature and Causes of the Wealth of Nations” he introduces the term “system of natural liberty”, which is equivalent to the current definition of capitalism. According to Smith economic freedom is a prerequisite for competitiveness and prosperity. He considered all kinds of interventions into the mechanism of the market unfavourable, since they destroyed the balance, which was established by the so called “invisible hand”. People in a free market were assumed to make rational decisions, which were based on self-interest (Twigg).
Essays on Karl Marx
Karl Marx Biography
The first greatest contribution of Karl Marx in political and social philosophies can be summed up by his utmost regard to the proletariats. Marx generalized the poor as being exploited in the market economy because even when he works so hard, he gets poorer and poorer. This is due to the forces of capitalism all over him. The poor produces wealth but he is alienated to it (Bottomore, p. 23 ). This means that he cannot enjoy the fruits of his labor. He could not have enough money to purchase the very thing that he creates.