Essay about Karl Marx And Adam Smith

1971 Words Apr 12th, 2016 8 Pages
Karl Marx and Adam Smith are both economists with theories of capital accumulation. Karl Marx was a German doctor of Philosophy. Adam Smith who was a Scottish moral philosopher developed a similar theory. The theories differ in the way they perceive labor value. Smith’s theory has a clear argument on capital accumulation such as his explanation for unproductive/productive labor in comparison to Marx. Marx’s explanation of productive labor, critique of abstinence theory, exploitation, and the so-called labor fund is less effective. Adam Smith was considered to be the father of economics. He was a professor at the University of Glasgow. He was the author of a book, The Wealth of Nations, which made him a better-known economist. Smith presents his theory on The Invisible Hand, which explains how individuals only act based on self-interest. Individuals tend to try not to better anyone else; however, in the process of acting on self-interest they could end up benefiting others. In his book, Smith presents his theory of capital accumulation. Smith’s theory of unproductive and productive labor makes a more effective argument. His theory for the division of labor is determined by explaining how productive and unproductive workers’ labor is valued. According to Smith, being unproductive means the labor of a worker would generate no value after it has been endured. The labor of many individuals whose jobs are important, such as lawyers, churchmen, physicians, army, navy and more…

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