ALL ABOUT ADAM SMITH

Father of Capitalism

What book did he write?

Inquiry into the Nature &Causes of the Wealth of Nations(a.k.a…The Wealth of Nations

What were his ideas on trade?

-pro free trade-against mercantilism

What were his ideas on self-Interest?

- Invisible hand guides economy- Each individual maximizes his

own benefit

What were his ideas onGovernment?

-limited involvement in economicaffairs-protect against monopolies-provide public services

What were his ideas on laborProductivity?

-specialization

Who/What did his ideas Influence?

- Founding fathers of U.S.- British trade policy in 18th century

What are the strengths of hisIdeas?

- Competition leads to efficiency

What are the weaknesses ofHis ideas?

-abuses developed during the Industrial Revolution-exploitation of workers

ALL ABOUT KARL MARX

Communism

What books did he write?

-Communist Manifesto-Das Kapital (economic theories)

Proletariat:

-poor working class

Bourgeoisie:

- Wealthy factory owners - capitalists

What problems did MarxBelieve capitalism caused?

-oppression to workers-workers exploited & wages keptLow by greedy factory owners

What did Marx believe aboutClass in society?- Class struggle exists- Class is determined by ownership of property-rich get rich & poor get poorer-wanted classless society – all equal

What stages must society goThrough to reach the ideal stateOf Communism?

-greater suffering for workers & More wealth for capitalists-lead to violent revolution & workersWould win

-need authoritarian gov’t at first,Then classless society would form & no gov’t would be needed

Who/What did his ideasInfluence?

- Lenin & Stalin- Russian Revolution (1917)- Chinese Communist Revolution (1949)

What are the strengths of hisIdeas?

-workers would be valued more

What are the weaknesses of hisIdeas?- Wages were increased over years, not lowered- Communism never worked in practice – still led to corruption & oppression