Adam Smith's Role in Launching Marxism
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- Опубліковано 13 вер 2024
- Was Adam Smith the great free market advocate that so many believe?
And just how did he influence Karl Marx?
Robert Wenzel, editor and publisher of EconomicPolicyJournal.com explores these questions during this episode of "This Week in Economics with Robert Wenzel"
Thank you RW. The three best economist in the world at the moment: Robert Wenzel, Jesus Huerta De Soto and Javier Milei.
Smith was not an "economist" (such a term did not exist when he was alive) or economic theorist. Nor did he consider himself such. He was a professor of moral philosophy and considered his work Theory of Moral Sentiments his most important, which he made revisions to up until his death. His Wealth of Nations was his observations of what made some countries more wealthy than others which can be summed up in his own words: "Little else is requisite to carry a state to the highest degree of opulence from the lowest barbarism, but peace, easy taxes, and a tolerable administration of justice; all the rest being brought about by the natural course of things. All governments which thwart this natural course, which force things into another channel, or which endeavour to arrest the progress of society at a particular point, are unnatural, and to support themselves are obliged to be oppressive and tyrannical." This is undoubtedly true as borne out in the yearly Index of Economic Freedom.
Yes the labor theory of value was wrong, but I highly doubt if Smith had been alive, he would have agreed with Marx's conclusions and subsequent observations of government.
Don't read Smith for theory, read for interesting (and often correct) observations. Don't let Rothbard's negativity sour you on Smith. There are living scholars much more interesting and prescient on Smith than Rothbard was. See James Otteson's works. And read Smith himself. Start with Theory.
Who said anything about Smith agreeing with Marx? The point is that Marx used Smith's incorrect observations to advance his theory.
And you may not think extensive discussion of the labor theory of value falls under economics but that is quite a statement. One might say Smithian.
Can we get an update from you on your opinion of Bitcoin?
Let's not throw out the baby with the bath water. Adam Smith's "Theory of Moral Sentiments" is a very poignant and prescient understanding of how freedom and economics interplay. The labor theory of value was the only game in town Robert. Until Menger and the other two stumbled upon and answer to the "Water Diamond Paradox". Its not something Adam Smith came up with...
Not true, Smith went backward. He clearly explained the paradox of value in his pre-Wealth of Nations lectures: "It is only on account of the plenty of water that it is so cheap as to be got for lifting, and on the account of the scarcity of diamonds...that they are so dear."
John Gillies, a translator of Aristotle, raised questions of plagiarism against Smith in his book on morality!