A Comparison Between Adam Smith and Karl Marx

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A comparison between Adam Smith and Karl Marx

The purpose of this essay is to evaluate and discuss how economists Adam Smith and Karl Marx contributed to current management practices and, more specifically, how they influenced the field of economics. Through critical analysis, we will explore the theories of Adam Smith and Karl Marx. Adam Smith’s contributions, from division of labor and the shift from a mercantile society to a capitalistic one as proposed in his “Wealth of nations report,” will be critically evaluated as to determine both their relevance today and the influence that they have had. Similarly, Karl Marx’s theories that helped to develop the economy in its most prosperous time will be critically evaluated to determine their influence and relevancy today. Although very distant in their theories and time, both men have played key roles in the development of economics, while in turn influencing current management practices. Both men were able to change and introduce new philosophies while reacting to the circumstances of their times, while creating legacies through their works that are still relevant in today’s vastly different circumstances and society.
Adam Smith Scottish economist Adam Smith, born in 1723, is responsible for the initial development of economics in the eighteenth century and provided the framework for how we approach economic issues today. Smith was an “advocate for a free market society where international trade through both imports and exports were at a premium” (IEP, 2014). Smith was able “to radically shift from the mercantilist views of his time to a more contemporary philosophy” (IEP, 2014) of capitalism, which as a society we still follow today.
Capitalist Theory Smith was so influential as to completely change our “economic philosophy” in the 1700’s to one that we have yet to improve on, illustrating the…...

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