Thematic Comparitice Analysis

1256 words - 6 pages

In order to use their resources efficiently, nations use different types of economic systems that will meet the needs of their country. Adam Smith’s economic theory of capitalism stressed the importance of free market and the “invisible hand”. He felt that in order for a nation to prosper there must be no government involvement in the market, because it would basically run itself. On the other hand, Karl Marx’s Communist Manifesto focuses on the struggle of the class system. He believed that the proletariat, or the poor people, must rise up and take from the bourgeoisie, or the rich upper class. He also believed in a government that is run by the workers and for the workers. Communism and ...view middle of the document...

Hegal developed the dialectic materialism based on the change of the “haves” taking from the “have not’s. His argument was similar to Marx’s in the sense that they both believed the poor needed to rise up and take from the people that have too much. Marx and Hegal both felt that in order to thrive as a nation, everybody must be brought into practice together and be rendered beneficial to mankind. If this is not achieved then the bourgeoisie or the “haves” will anger the “have-nots”, to the point where revolutions can occur. The French Revolution is a great example of the large problems the class imbalance can create. If the bourgeoisie keep taking and taking from the lower class and continue to treat them poorly then a revolution is almost guaranteed to occur. This is how the bourgeoisie ultimately lead to their own downfall.
The development of communism in Russia under Lenin and Stalin was not how Marx described it in his “ Communist Manifesto”. This is because the development of communism in Russia diverged from Marxist theory of a government run for the workers by the workers or basically by the people, for the people. After World War I Lenin began restoring order by reconstructing the government. However Lenin and his Bolsheviks radically revised Marxist ideas of communism. For example Lenin’s New Economic Policy, allowed for a free market in grain, looked to attract foreign investment capital, and allowed some small private enterprise. This was not the government situation Karl Marx described in his work. Under Stalin’s rule communism also diverged drastically from Marxist theory. Stalin ushered a period of total social control with no say or freedoms for the people. He prohibited any individual creativity that did not agree with the views of the state. Stalin wasn’t only a cruel dictator over his own people, but he also designed to cause a famine, which resulted in the genocide of 20 million Kulax people. By developing the 5 Year Plan Stalin basically made it so that the government had complete control over the economy.
Adam Smith’s economic theory can be seen as the starting point of the modern economy. Contrary to Marx’s theory in the Communist Manifesto, Adam Smith in the Wealth of Nations expressed entirely different ideas that focused on what the people wanted rather than what the government wanted. Smith believed in the free hand of the market and opposed government interference because it ultimately results in the public paying higher taxes. This self-regulating mechanism allowed for supply and demand, which increased competition and benefited society as a whole by keeping prices low while still building an incentive for a wide variety of goods and services. Smith’s idea of a...

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