Smith/ Marx Document Analysis

“The Wealth of Nations” is the masterwork written by Scottish economist and ethical philosopher Adam Smith and was initially published in 1776. It is an account of economics at the dawn of the Industrial Revolution, as well as a metaphorical piece written for the commonly educated individual of the 18th century - advocating a free market economy as more industrious and more beneficial to society. While, “The Communist Manifesto” was published in 1848, and is one of the world's most significant political manuscripts. It was commissioned by the Communist League and written by communist theorists Karl Marx and Friedrich Engels. It laid out the League's purposes and program. It presents an analytical approach to the class struggle (historical and present) and the problems of capitalism, rather than a prediction of communism's potential future forms.

Being called "the father of economics" is not without reason. Adam Smith demonstrated the essential principles in economics in his all-time classic "The Wealth of Nations" -- a book that changes the history of economic theory development. When asked how advancements in productivity occur, most people would say through technology and machinery. However, Adam Smith believes advancements are due to increased specialization of labor. People such as philosophers, scientists, and engineers are significant to this division of labor; they create theories, formulas, and models which allow technology to develop and progress. This, in return, allows the people as a community to evolve.

The foundation of this division of labor is man's tendency to trade. Also, it is motivated by the human instinct to self-love and self-help. Contrary to popular believe, it is not based upon wisdom. "This division of labour... is not originally the effect of any human wisdom". Smith believes that something most people ask themselves is "will I benefit from this?" However, he does not believe self-interest is a form of selfishness nor is it the pinnacle of the force behind human motivation. If he believed that, then all humans would be nothing more than parasitic savages only looking to help themselves. In addition to self-motivation is cooperation and barter amongst others. Smith brings up an example of this through the market system. "...by the general disposition to truck, barter, and exchange, being brought, as it were, into a common stock, where everyman man purchase whatever part of the produce of other men's talents he has occasion for." Essential what Smith is saying is that the market is a form of mutual aid and that it is a tool to share individual talents. This, in return, contributes to the division of labor. The purpose of Wealth of Nations is so that people can understand the fundamentals of economics according to Adam Smith. Smith realizes mercantilism is failing because society is not producing what people want. He defines and creates a better system, the market system. However, to whether or not it can be applied to today's world is subjective. Many examples Smith gives are excellent according to his times. Nowadays, there is not butcher, ...