The to the hatred come from the labor

fall of the feudalism system make the new economic system being invented by
Adam Smith, the Father of Economic. The new economic system was called
Capitalism. Capitalism is a system that allowed the private sector to conduct
the limited resources and produce goods and service without being interrupted
by the government. They can have all the resources, property and wealth. Their
goal is to use less cost but still can maximizing the profit. The competition
between the society is really tough because everyone want to get the limited resources and does not
want to be left out from the competition. We can view the capitalist system
from two perspective.

            First is from Adam Smith’s perspective,
we can see that he did not agree with the physiocrats that saying the main
production is coming from agriculture. For him, the main production is coming
from the human behaviour which is selfishness. Being selfish has no danger and
loss but it can stabilise the economy growth. This is beacuse when someone is
being selfish, socialise tend to compete more. He even said about the theory of
invisible hand that will stabilise the economy.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

            Second is from Karl Marx
perspective, he uses the marxisme to give out the ideas of capitalist and
socialism. Marxisme is based on Karl Marx thinking and teachings. There are a
few ideas of marxisme. First is about when the labor were forced to work for
the wealth. They even produce more product and work over time and earn more
profit than they intend to. It may be beneficial for the owner but not for the
labor. This is when Karl Marx called it as ‘surplus value’. This has lead to
the hatred come from the labor workers. Second is about law of value. All
producer have certain target on how many units of product and goods that they
want to produce. To achieve their target, they will adjust the labor work hour
with the amount of production that they want to produce. Third is about class
awareness. If there is any class that want to have a good transformation, they
need to have their own awareness in the society first.

Karl Marx, the government should participated more in the production circle.
This is why Karl Marx is more to socialism rather than capitalism and want to
continue as communism. He said that the capitalist that being taught by Adam
Smith is more based on the exploitation of labor power. He sees that this
system allowed the more powerful authority which is the richess society has
being using their power to force more labor to work under them. This has make
the poor society become more poorer. He does not like the social system used in
the era of Adam Smith because for him it does not appropriate to have the gap
between the richest and poorest. The capitalist system has too many weakness
that it could be replace by other economic system.

Marx and his friend, Friedrich Engels had joint force to write and published a
book that have been attracted many economist and philosopher from around the
wolrd called as ‘Das Kapital’ They published three volumes of Capital. In
Capital volume I it talks about Karl Marx review on Capitalism. In this volume,
Karl Marx also talk about the theory of surplus value and more that have
connection with manufacturing. Next two volumes were being published by his
friend, Friedrich Engels after he dies. Second volume is about the labour who
works for the private sector being as the consumer and also as the labor force.
Marx even wrote a letter for Friedrich Engels that said:

Book 1, we content ourselves with the assumption that if in the self-expansion
process £100 becomes £110, the latter will find already in existence in the
market the elements into which it will change once more. But now we investigate
the conditions under which these elements are found at hand, namely the social
intertwining of the different capitals, of the component parts of capital and
of revenue (= s).’ (Engels, 1967)

volume three it talks about the procedure of capitalist as overall.

we see from Adam Smith’s perspective, we can see the pureness of capitalism but
it is different when we see from Karl Marx perspective beacuse he is more to
radical. Even John E.Roemer said that the contrast between both of them is as follows:

argued that the individual’s pursuit of self-interest would lead to an outcome
beneficial to all, whereas Marx argued that the pursuit of self- interest would
lead to anarchy, chrisis and the dissolution of the private property-based
system itself. Smith spoke of the invisible hand guiding individual, self-
interested agents to perform those actions that would be, despite their lack of
concern for such an outcome, socially optimal; for Marxism the simile is the
iron fist of competition, pulverizing the workers and making them worse off
than they would be in another feasible system, namely, one based on the social
or public ownership of property”. (Roemer, 1988)



I'm Simon!

Would you like to get a custom essay? How about receiving a customized one?

Check it out