How Did Adam Smith Affect Marx's Work

Early in Marx’s career and writings he is dominated by a heavy Hegelian influence, particularly by the Young Hegelians who were radical liberals. In particular Ludwig Feuerbach had a profound effect on Marx’s early works. In contrast Adam Smith’s early life and works were strongly influenced by the literati who were a tight, close-knit group that met at pubs and social clubs to discuss, critique and debate each other’s work. While they both had early influences that would later drastically affect their views and works, Adam Smith was clearly the most influential of the two based on the changes to the Western world and culture. When you look at the political effects of both Smith and Marx’s philosophies you see a world dominated by a capitalist economy and society. This is what Smith’s ideas really valued and why they were valued and adopted by most of the “modern” world. Smith believed that states could flourish on the productiveness of their economies only by rule of law and limited control of banking. Smith also believed that measures that restrict or encourage a
Marx claims that this is and exploitation of the worker, and that the worker is the only commodity that produces more value than it is worth. Marx refuses to accept that there is a harmony of interests between the worker and the employer in Capitalism. Marx again attempts to point out a flaw in Capitalism stating, that there is no long term stability or equilibrium, and that it is just an economy of boom and bust. Smith on the other hand argues that a free market economy (Capitalism) leads to economic well being. Smith believed that the main cause of prosperity in a nation was the division of labor. At the same time Smith adamantly opposed mercantilism arguing that the primary advantage of trade was that it opened new markets and allowed for commodities for a lower