Smith and Marx/Engels readings

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Battle of the Markets : Adam Smith Faces Karl Marx

Adam Smith highly recognizes the free market 's role in promoting and pursuing both individual and societal interests . In understanding the importance and significance of free markets in economic growth and prosperity , it is imperative to first comprehend Smith 's concept of the Invisible Hand (Heilbroner 54

In as far as Smith is concerned , the emergence and development of the free market originates from one 's personal interests (Hall et . al 108 Each and every

individual has his own desires of asserting and further improving his position within the economic hierarchy . Relatively , in for one to attain the economic status that he is aspiring for profiteering becomes an efficient strategy or technique . There is a strong need for man to constantly seek for other means and opportunities in which he can further increase his profit as well as his personal wealth . Although , this situation seems to individualistic , the invisible hand suggests that the outcome of man 's individual pursuits are still geared towards the good and benefit of the whole society (Hall et . al 108 . As capitalists build their respective companies , it is evident that they are also trying to seek ways to increase their profits However , society also benefits because the companies built offer certain services that can be consumed by various members of the community . The products and services that are offered by profiteering individuals are also instrumental in making the lives of other individuals easier or more productive . In addition to that , the growth of business establishments and groups is instrumental in generating jobs . Obviously the existence of high employment rates is a manifestation of a healthy and productive society

On a closer examination , it can be seen that profiteering individuals have little intention of making communal interests on top of their priorities . However , whether businessmen or capitalists are unaware or not , the end-results of their profiteering are indeed , benefited by many . As different businesses spur , a growing market also grows Nevertheless , for the market to function properly and efficiently , it should be devoid of government interventions as well as monopolies (Hall et . al 109 . Capitalists should experience freedom and should be allowed to privately handle their affairs so that they can achieve and make use of their maximum potentials . If there is anything that the government should do , these are theless limited to the impositions of laws and legal matters (Hall et . al 109 . In this manner , the government can focus more on providing the needs of the public such as law execution and establishment of public utilities and infrastructures (Hall et . al 109 . Government intervention can be detrimental since it can hinder the further possibilities and growth of more markets

On the other hand , Marx and Engels are in direct opposition to the free market concept . For them , free markets simple intensify the economic gap between the proletariat and the bourgeoisie (Marx , Cowling Engels Carver 27 . A free market is no...