Question

What was Karl Marx and Adam smith theory of economics?

Answer 1

Adam Smith and Karl Marx were important economists. Both of them were highly original thinker who developed theories of economics that were put into practice and affected the global economies for generations. Adam Smith supported laissez-faire capitalism; an economic system where individuals or corporations are free to run their occupation or business without regulation from the government. He claims that this systems works because of the "natural law of competition" , that means where businesses compete with each other and eventually end up maintaining fair prices for whatever they're selling in order to try and get more customers. On contrary, Karl Marx view on the role of government and government intervention, that a nation will have a more successful economy if the government owns and have controls every business. Marx invented communism; an economic system that means a system where money doesn't exist, and every person works for the good of the state.