Economic Philosophers: Adam Smith and Karl Marx

Who was Adam Smith?

Philosopher born in Kirkcaldy, Scotland

What did Adam Smith believe in?

Capitalism

What book did Adam Smith write?

The Wealth of Nations (1776)

What did 'The Wealth of Nations' explain?

Framework of capitalism

What is another name for capitalism?

Free enterprise

In capitalism, who has the freedom to own and control the means of production?

Citizens

What does capitalism allow citizens to own and control?

Land, equipment, money

What type of economic activities do citizens control in capitalism?

All the economic activities of the nation

Where was Karl Marx born?

Trier (Germany)

What ideology did Karl Marx believe in?

Communism

What did Karl Marx write in 1848?

Communist Manifesto

Communism

An economic system in which all the means of production are in the hands of the workers. Economic resources are to be collectively owned and equally shared by all citizens.

What is socialism?

An economic system with government ownership/control and wealth redistribution.

What role does the central government play in socialism?

It takes an active role in owning/controlling parts of the economy and redistributing wealth.