based on ideas of Adam Smith capitalism communism
Adam Smith is primarily known for his advocacy of free-market capitalism, while communism represents a different economic and political ideology. Here are some key ideas associated with these two ideologies:
Capitalism (Adam Smith):
1. Invisible Hand: Adam Smith popularized the concept of the "invisible hand," which suggests that individuals pursuing their own self-interests in a competitive market will unintentionally promote the well-being of society as a whole.
2. Laissez-faire: Smith argued that governments should have a limited role in the economy and should not interfere with the natural workings of the free market. He believed that competition, supply, and demand should be the primary drivers of economic activity.
3. Division of Labor: Smith emphasized the importance of division of labor, stating that specialization and the separation of tasks result in increased productivity and efficiency.
Communism:
1. Collective Ownership: Communism advocates for the abolition of private property and the establishment of collective ownership or state ownership of the means of production. This aims to eliminate socio-economic classes and ensure equality among individuals.
2. Classless Society: Communism seeks to create a classless society where wealth and resources are distributed equally among all members. There is no private ownership of means of production, and everyone is expected to contribute according to their abilities and receive according to their needs.
3. Planned Economy: In a communist system, economic planning is commonly employed to allocate resources and determine production according to the needs of society. The state or a centralized authority is responsible for making economic decisions.
It is important to note that these are simplified descriptions of complex ideologies, and various interpretations and implementations exist. Additionally, while Adam Smith is regarded as the father of modern capitalism, communism has been shaped by various thinkers like Karl Marx and Friedrich Engels.