Adam Smith vs. Karl Marx
Two people were icons among economists. Adam Smith and Karl Marx. These two men came up with capitalism and communism respectively. These people had polar opposite views on how much the government should be involved in the market.
Adam Smith believed that all the government should have little to no control over the market. He thought that an unregulated economy would fuel itself. Capitalism was built on the idea that a businessman would want to maximize profit and would therefore adjust prices to be what people could afford. Each good would be sold for only as much as the benefit derived from the product. It would also lower prices due to the fact that other suppliers would open and a competition would start between them. Price would be lowered to keep customers and profits to a maximum. Another idea of a capitalist economy was that producers would choose how much of a product to make. Instead of rationing something such as bread to making a loaf a week for a family, people could buy as much as they needed and the producer would adjust the amount made accordingly. This way there would be no surplus or shortage of goods.
Karl Marx wanted things to be regulated so that no social class would be derived from the amount of money someone had. He wanted to give everyone an even, or at least proportional, salary. The heads of companies made a ridiculous amount of money based on the work them did. Karl suggested a revolution by the lower class people to take down business tycoons and force money to be distributed fairly. He felt that this was necessary because anyone born into a higher class family was destined to have a higher education, to grow up in a better home, and ultimately to become a wealthy person. In reverse, someone born into the lower working class was destined to get a lower education and could easily be under-payed for his work. The bourgeoisie would have an easy advantage in keeping the working class proletariat...