Question

Explain how the Marxist ideal that “people work for societal good rather than personal gain” is at odds with Smith’s Liberal view of economics.

Answer 1

Ans. The notion of the social contract that is so central to liberalism can also be interpreted as a basis for collectivism because there is government control. Since the will of the people is still considered, laws are made so that if the government is at anytime out of line, they can be removed for not following the will of the people which means the government does not have complete control. Also both the people and government exchange basic rights and freedoms.

1.The goal of the socialist ideology is to maximize wealth and opportunity for all people through public ownership and control of industries and social services.

2.Utopian socialists believed that education and improved working conditions could peacefully eradicate the worst aspects of capitalism and lead to an idea socialist society where everyone could live happily.

3.Utopian socialists generally don't believe any form of class struggle and political revolution is necessary for socialism to emerge. They believe that people of all classes can voluntarily adopt their plan for society if it’s presented convincingly.

41.a) capitalism emerges from feudalism.

b) violent conflict occurs between the bourgeoisie and the proletariat; the proletariat wins.

c) a centrally planned economy is established, income is distributed according to the value of the work performed.

d) economic equality is established.

e) social classes gradually disappear.

f) people work for societal good rather than personal gain.

g) the state “withers” away.2.

The Marxist ideal is at odds with Smith's views because he believes that individuals work for their own self interest in a free market system.