The Views of Marx, Smith, and Veblen on Capitalism and Human Nature - Essay Example

The Views of Marx, Smith, and Veblen on Capitalism and Human Nature Introduction Many and philosophers have put down their views concerning capitalism, which is one of the dominant economic systems in the modern world. Karl Marx and his critique of capitalism have proved to be an outstanding opinion that has led to the development of Marxism. Other authors such as Adam Smith have also explored the issue of capitalism. Many philosophers view Adam Smith as the founding father of capitalism because he defined the underlying aspects of the system. Thorsten Veblen also explored the capitalist system, highlighting some of its outstanding aspects. These three authors also highlighted their views concerning the human nature as well as the ideal system of social justice. Notably, the views of these authors will form the core discussion in this paper. Marx, Smith, and Veblen on Capitalism Karl Marx voiced his criticisms against the capitalist ideology, which had become very popular. According to Marx, capitalism comprised of the individuals controlling the production and the workers providing labor. From the onset, Marx made it evident that capitalism led to the division of the society into two conflicting groups. The capitalists made their interests evident because they wanted to use the workers to increase their profits. Karl Marx highlighted that the capitalists were exploiting the workers for their benefits. On the other hand, the workers did not have the means to control production, and had no choice but to work for the capitalists. Capitalism gave birth to the division of labor and specialization. Notably, the capitalists placed compulsion on the workers to be willing to work with technical and unpleasant jobs. In the view of Marx, capitalism led to the division of labor, a factor that degraded the value of humans and reduced them to machines. In addition, capitalism would trigger class struggles in accordance with Marx (Manton and English 377). The capitalists who formed the ruling class defined extreme of the system. The workers on the other hand defined the other extreme. The ruling class with its intention to exploit the workers would continue to oppress them in order to increase their profits. Over time, the workers would fight back. The fighting back, of the working class would be the cause of a conflict between the two classes. Marx also had the conviction that capitalism would lead to alienation. Since many workers did not experience any connection to their work because of their powerlessness alienation would result. Prior to the development of capitalism, many people relied on labor as a reflection of their nature and history as well as a definition of their self-identity. With capitalism redefining the labor and placing workers under the compulsion to deliver, the working class would experience isolation. Therefore, Karl Marx was against capitalism because it led to the deterioration of the society (Watson 499). On the other hand, Adam Smith was a supporter of capitalism. In his text titled The Wealth of Nations published in 1776, Smith highlighted the importance of capitalism in the society. He opined that human beings are naturally industrious and in search for the greatest value. Many people sought to promote their self-interests. Therefore, Smith highlighted that there was a need for a free enterprise system, which would allow people to pursue self-interests. In addition, he highlighted the role of the invisible hand in determining the welfare of people. In a free enterprise system, competition would result as different people and businesses sought to increase their profits. Smith was keen to prophesy that capitalists would pursue self-interests with the idea that the free enterprise system would promote economic growth. He believed in the existence of natural laws, which would drive the economics leading to profits to different industries, as well as the government. Smith viewed division of labor as a critical part of capitalism. He highlighted that division of labor would enhance the efficiency in production. He viewed that an increased level of specialization combined with the pursuit for self-interests would lead to mutually beneficial enterprises. Without doubt, Smith was in full support of the capitalist system emphasizing it as the most effective economic system (Edge and Townshend 721). Thorsten Veblen exhibited views on capitalism that conformed to the views of Marx. Thorsten Veblen criticized the capitalist system as he had observed it in the American business. He was keen to highlight that the owners of businesses who form the ruling class defined by Marx are in full control of the system as they pursue their strategic interests. In order to satisfy their strategic interests, the businesspersons have been striving to control all the factors in the system for their benefits. Veblen is keen to highlight that the businesspersons have an authoritative discretion and define the domineering force in any industry. In addition, the rich capitalists define the different factors in investments and markets while exerting control to all the production systems. Evidently, the primary purpose of the businesspersons is to register increased levels of wealth. However, Veblen mentions that the success of the capitalists results in the disadvantage of the workers (Pradella 96). Marx, Smith, and Veblen on Human Nature Adam Smith described the human nature in detail in his text titled The Wealth of Nations. He had the conviction that human beings seek self-interests because of their naturally programmed aspects. In addition, Smith mentioned that the tendency to indulge in trade was a defining factor in human nature. In order to promote self-interests, each human being depended on others for survival in the view of Smith. He promoted the egotistical nature of human beings. He also highlighted that human beings had different talents and diverse capacities, which triggered the division of labor. Marx was keen to dispute the views of Smith concerning human nature by highlighting that capitalism had transformed human beings and prompted them to seek self-interests (Yamamoto 228). Marx believed that human beings were not egotistic in nature. However, the capitalist system had transformed them and compelled them to adopt a selfish pattern of thinking.in the view of Marx, human beings sought to satisfy their need through work and the interaction with others. He highlighted that there was a measure of interdependence between human beings. However, the capitalist system had introduced division of labor and alienation factors that had altered the human nature. According to Veblen, human nature had exhibited a continuous growth through evolution over a long period. In his view, human nature was different depending on the circumstances, and he promoted the view that the fittest would survive in support of Darwin (228). Marx, Smith, and Veblen on the Ideal Social and Economic Situation The views of Marx remain evident that communism was the best economic ideology. Marx opined that communism promoted a balanced human development because people engage in labor and handle different tasks in an effort to express their creativity. In addition, in the view of Marx, communism would result in the liberation of the working class. He highlighted that the working class would stage a rebellion against the ruling class because of the continued exploitation. Therefore, the result would be a communist system, which would grant people freedom that does not exist in capitalism. Notably, Marx opined that communism would represent a system that promotes social justice. On the other hand, Smith believed that capitalism represented the best economic system because it established a free enterprise system governed by natural laws. Whereas Marx promoted economic equality, Smith was of the view that economic inequality was an evident result of the self-seeking nature of human beings in a free capitalist system. Veblen also criticized the capitalist system. Veblen proves to be a follower of Carl Marx because he was against the adverse effects of social injustice brought forth by capitalism. Conclusion Evidently, different writers have exhibited various convictions concerning capitalism, human nature, and social justice. As highlighted above, Adam Smith predicted that capitalism would arise triggering the development of a free enterprise system. Smith believed that human beings sought self-interests because of their egotistic nature. Marx was against Smith’s views highlighting that capitalism would bring forth undesirable interests in the society. He envisioned a communist economic system that would promote social justice. Finally, Veblen also explored the undesirable effects of capitalism in the American society. He was keen to highlight that capitalism promoted social injustice. Work Cited Edge, Stephen, and Jules Townshend. "Marx And Veblen On Human Nature, History, And Capitalism: Vive La Difference!." Journal of Economic Issues (Association For Evolutionary Economics) 27.3 (1993): 721. Business Source Complete. Web. 3 Mar. 2015. Manton, Edgar J., and Donald E. English. "Economic Heritage: Adam Smith Vs. Karl Marx." College Student Journal 42.2 (2008): 375-380. SPORTDiscus with Full Text. Web. 3 Mar. 2015. Pradella, Lucia. "Beijing Between Smith And Marx." Historical Materialism 18.1 (2010): 88-109. Political Science Complete. Web. 3 Mar. 2015. Watson, Matthew. "Desperately Seeking Social Approval: Adam Smith, Thorstein Veblen And The Moral Limits Of Capitalist Culture." British Journal of Sociology 63.3 (2012): 491-512. SocINDEX with Full Text. Web. 3 Mar. 2015. Yamamoto, Hirotaro. "Economic Systems And Theory Of Human Nature: Aristotle, Adam Smith, And Karl Marx." International Critical Thought 2.2 (2012): 228. Supplemental Index. Web. 3 Mar. 2015. Read More