Smith vs Marx

Aim: How do the different economic systems of Karl Marx and Adam Smith differ and how do they effect us today?

Lesson Overview:

Item	Approx Time
Do Now	3-5 Min
Mini Lesson	15-20 Min
Activity	15 Min
Discussion	5-7 Min

Karl Marx vs. Adam Smith

Adam Smith and Karl Marx are the greatest economic analysts the world has ever seen. Adam Smith is considered as the father of modern day economics whereas Karl Marx is considered as the the father of Communism.

Adam Smith has taken a Western approach in his thought processing on economics. Adam Smith had stated that the workers always look for the best jobs and the best wages. On the hand, Karl Marx was against such a theory. In his opinion, a labor-wage war will break down the society and lead to the downfall of the economic composition.

Adam Smith believed in the liberty of all individuals through a capitalistic approach. On the contrary, Karl Marx was a critic of capitalism and believed in individual freedom. Karl Marx believed that Socialism would replace capitalism.

Adam Smith was also an advocate of free market whereas Karl Marx thought this would make the rich more rich and the poor poorer.

Adam Smith was of the opinion that each person has the right to pursue happiness and he has to take that in his own hands to advance within the society. Karl Marx does not agree with this principle. In his opinion, when a person betters himself, he is not improving but endangering the society.

Adam Smith has published his ideologies in his book, Wealth of Nations, which was published in 1776. Adam Smith has discussed in detail the principles of Capitalism in this book. The basic idea of Communism put forth by Karl Marx came to the light through his book, Communist Manifesto' (1848), which he co-authored with Frederick Engels.

While Adam Smith was an advocate of small government, Karl Marx was an advocate of larger government.

Adam Smith was a Scottish economist born in 1723. Karl Marx was a German political economist born in 1818.

Summary

1. Adam Smith had stated that the workers always look for the best jobs and the best wages. Karl Marx was of the opinion that a labor- wage war will break down the society and lead to the downfall of the economic composition.

2. Adam Smith believed in the liberty of all individuals through a capitalistic approach. On the contrary, Karl believed that Socialism will replace capitalism.

3. Adam Smith was of the opinion that each person has the right to pursue happiness and he has to take that in his own hands to advance within the society. In Karl Marx's opinion, when a person betters himself he is not improving but endangering the society.

Classwork & Homework

Lesson Activity: Marx vs. Smith Play

Homework: Assignments