The Great Commerce - Essay Example

Of the Natural Progress of Opulence from Adam Smith. 2)The Communist Manifesto from Karl Marx. pick out 3 assumption from these two essays and write an essay compare the strengths and weaknesses of their arguements.Do their conclusions logically follow? The 3 assumptions from Adam Smith that you sent was not correct. It should be 1)The great commerce between the country and town is advantage to both. 2)natural progress of wealth must first go to agriculture, then to manufactures, and finally foreign commerce. 3)One should invest his or her capital in land than either in manufactures or in foreign trade. the 3 assumptions of Karl Marx that you found ealier were okay. My thesis to this essay is as follow: For any wealthy nation to exist, commercer must be the main factorin economic development in order to creat and accumulate wealth. Thanks for your help Course Name Faculty name Date I. Introduction II. Assumptions III. Conclusion IV. Reference I. Introduction The two essays ‘Of the Natural Progress of Opulence’ by Adam Smith and ‘The Communist Manifesto’ by Karl Marx are among the stepping stone works for the history economy and social studies. Both the essays are based on the changing societal scenario. These essays have provided the world with food of thought and have been proved to be revolutionary. At one hand Adam Smith describes the great commerce between the country and town, stress on manufacturing sector and capital investment decisions on the other hand Marx looks at the economic conditions where one segment of the society is exploiting the other segment of the society, rejects the class system and concentration of power on the few hands. These essay are based on few assumption author have made. The perspective of both the author was based on the economic and social conditions of their time. Both of them looked at economy as a major change agent in the society. The assumption of Smith was the great commerce between the country and town is advantage to both, natural progress of wealth must first go to agriculture, then to manufactures, and finally foreign commerce and one should invest his or her capital in land than either in manufactures or in foreign trade. Assumptions of Marx were endless insecurity and agitation, revolutionary role of the bourgeoisie and assumption of classes. Both of them have focused on commerce related activities as a centre of economic growth and wealth creation. II. Assumptions The three assumptions of both the essays together are natural progress of wealth must first go to agriculture, then to manufactures and finally foreign commerce of ‘Of the Natural Progress of Opulence’ by Adam Smith and revolutionary role of the bourgeoisie and assumption of classes of ‘The Communist Manifesto’ by Karl Marx. Smith’s work establishes a relationship between the towns and country for the production process. It also has touched the basic form of distribution pattern for the goods. According to Smith the gain in this process is reciprocal and mutual for the inhabitants of country and towns. The assumptions of the essay are the great commerce between the country and town is advantage to both, natural progress of wealth must first go to agriculture, then to manufactures, and finally foreign commerce and one should invest his or her capital in land than either in manufactures or in foreign trade. In the essay there is clear relationship between the country and town for commerce activities. Both are absorbing the surplus of each other. It was the initial form of commerce trade system of the civilised society. As per Smith country supplies the town with the means of subsistence and the materials of manufacture. Town lacks in the manufacturing capacities to reproduce any other substance. Towns basically supply agrarian surplus and required material for the manufacturing. The products from the country add value to the luxuries and comfort of the people in town. According to Smith the greater part of the wealth should always support agriculture first. He explained agriculture to have greater surplus for manufacturing industry. The base of any commerce activity was agriculture according to him. The control over the capital invested on agricultural sector was higher. The chances of loss were less than it was for the trader in manufacturing sector. As everyone knows higher the risk higher the returns, probably the scenario at that period was not in the favour of taking risk and investing in something other than traditional agriculture that Smith have stressed on utilising capital in the agriculture sector first. Smith had also stressed on the manufacturing sector, as it could be provide employment opportunity. He had seen potential of manufacturing sector to meet the demands and contribute in the economy. This surplus of the town can come from not just the neighbourhood country or territory but also from the distant countries. Smith’s assumption of commerce between the country and town is advantage to both has certain practical drawbacks. It is not just surplus which is being supplied, now the production is based on demand. The bargaining powers of suppliers of agriculture raw materials are controlled by manufacturing sector for various products. The globalisation and internationalisation has changed the overall economic pattern. The economy of any country is no longer limited to the demand and supply of the nation alone. It is greatly influenced by global economy. The service sector has become more promising to for employment creation than service sector. The investment decision should not be based on some rule rather it should be based on the investment requirements of various sectors. One should invest his or her capital in growing sector where he or she has some control over his or her investments. In present scenario there are various growing sectors which one can look at for investment decisions. The Communist Manifesto is a long and concise effort of Karl Marx to understand the class struggle, society, politics and forces of production and labour of the capital market. Karl Marx revolutionary ideas have been well recognised all over the world. His approaches have been giving food of though to various academician, writers and researchers, whether in the favour of Marx Theory or against it researchers and policy makers could develop best of the policies based on his theories. The Communist Manifesto was based upon the ideas of Friedrich Engels. The assumptions discussed hare are revolutionary role of the bourgeoisie and assumption of classes. One of the basic assumptions of Karl Marx was that oppressed class is always in the feeling of insecurity and agitation. The bourgeoisie or the ruling class according to the Manifesto has the exploited the Proletarians or the working class. Marx mentioned two classes in the society. Wherein one is always exploited and the other always gets exploits. This class struggle continues till the lower class gains power over the upper class and replaces it. They have taken the fruits of their labours and exploited them to a level where this class struggled and gained power over other. Marx looked at the end of this restlessness, insecurity and agitation among people by developing the classless, equal society for all. This was to be achieved by abolition of the property and family systems and achieving the advancement of society. The manifesto urged the working class to unite for their rights. These people are owner of the means of production mainly labour. They have rights to the entire surplus over the capitalist class. In the Manifesto the clear division of two classes or the polarisation of two classes in the society is mentioned. According to Karl Marx there strata of society are "freeman and slave, patrician and plebeian, lord and serf...in a word, oppressor and oppressed." Marx and Engels share a view that this oppressed class is the working class which is the real owner of the profits rather than the capitalist class. Marx was in favour of abolition of all the classes, family system, rules and regulations of the capitalist society. The assumptions of ‘The Communist Manifesto’ were for the ideal society. In reality there is no ideal society. The abolition of class, differences, family systems or emotional bonding is not practically possible in our society. The motivational factor will go down if the profits produced are distributed equally and everyone is considered same in the society. III. Conclusion From the two essay mentioned the commerce seem to be the main factor of the growth of wealth and economic development of any nation. It is also responsible for various socio-economic changes. It is the factor due to which various classes in the society exist. The power of wealth gives opportunity to one class to exploit other. The growth of any economy depends on it commerce activity. On the basis of demand and supply the surplus of economy flows from town to country. To support overall growth of economy one must first support with capital investment to the basic sector of economy that is agriculture than manufacturing and foreign trade. Reference Jacobus L A; 2006 “ World of Ideas" Essential Readings for College Writers Seventh Edition. Bedforth St. Martins Introduction The two essays ‘Of the Natural Progress of Opulence’ by Adam Smith and ‘The Communist Manifesto’ by Karl Marx are among the stepping stone works for the history economy and social studies. Both the essays are based on the changing societal scenario. These essays have provided the world with food of thought and have been proved to be revolutionary. At one hand Adam Smith describes the great commerce between the country and town, stress on manufacturing sector and capital investment decisions on the other hand Marx looks at the economic conditions where one segment of the society is exploiting the other segment of the society, rejects the class system and concentration of power on the few hands. These essay are based on few assumption author have made. The perspective of both the author was based on the economic and social conditions of their time. Both of them looked at economy as a major change agent in the society. The assumption of Smith was the great commerce between the country and town is advantage to both, natural progress of wealth must first go to agriculture, then to manufactures, and finally foreign commerce and one should invest his or her capital in land than either in manufactures or in foreign trade. Assumptions of Marx were endless insecurity and agitation, revolutionary role of the bourgeoisie and assumption of classes. Both of them have focused on commerce related activities as a centre of economic growth and wealth creation. Of the Natural Progress of Opulence-Adam Smith Contributions of Adam Smith’s works have contributed in the development of the academic economics. This work ‘Of the Natural Progress of Opulence’ as the title suggests it explains the way to deal with the surplus in the economy at basic level. It establishes a relationship between the towns and country for the production process. It also has touched the basic form of distribution pattern for the goods. According to Smith the gain in this process is reciprocal and mutual for the inhabitants of country and towns. The assumptions of the essay are as follows: 1. The great commerce between the country and town is advantage to both. 2. Natural progress of wealth must first go to agriculture, then to manufactures, and finally foreign commerce. 3. One should invest his or her capital in land than either in manufactures or in foreign trade. The great commerce between the country and town is advantage to both. In the essay there is clear relationship between the country and town for commerce activities. Both are absorbing the surplus of each other. It was the initial form of commerce trade system of the civilised society. As per Smith country supplies the town with the means of subsistence and the materials of manufacture. Town lacks in the manufacturing capacities to reproduce any other substance. Towns basically supply agrarian surplus. The products from the country add value to the luxuries and comfort of the people in town. Natural progress of wealth must first go to agriculture, then to manufactures, and finally foreign commerce. The other assumption of this essay is based the utilisation of capital among people. According to Smith the greater part of the wealth should always support agriculture first. He explained agriculture to have greater surplus than manufacturing industry. Smith had stressed on the manufacturing sector. He had seen potential of manufacturing sector to meet the demands and contribute in the economy. This could also offer a great employment opportunity. The essay was based on the assumption of the surplus; whatever was in surplus would reach the nearest market. People residing near to market had more profits as the distribution cost was less. In the essay progress of opulence has been discussed. Subsistence is prior to the convenience and luxury. The surplus produce of the country constitute the subsistence of the town. This surplus of the town can come from not just the neighbourhood country or territory but also from the distant countries. The equilibrium conditions are achieved with supplying the surplus of one area to the other area and fulfilling the demands of the market at both the places. One should invest his or her capital in land than either in manufactures or in foreign trade Smith have emphasised role of agriculture on the economic and overall growth of society. Investing in the agriculture provides better control over the capital than it would do in the other two sectors. The risk associated was less in the agriculture sector. This was regarded as basic pillar of economy. Smith’s assumption of commerce between the country and town is advantage to both has certain practical drawbacks. It is not just surplus which is being supplied, now the production is based on demand. The bargaining powers of suppliers of agriculture raw materials are controlled by manufacturing sector for various products. The globalisation and internationalisation has changed the overall economic pattern. The economy of any country is no longer limited to the demand and supply of the nation alone. It is greatly influenced by global economy. The service sector has become more promising to for employment creation than service sector. The investment decision should not be based on some rule rather it should be based on the investment requirements of various sectors. One should invest his or her capital in growing sector where he or she has some control over his or her investments. In present scenario there are various growing sectors which one can look at for investment decisions. The Communist Manifesto The Communist Manifesto is a long and concise effort of Karl Marx to understand the class struggle, society, politics, and forces of production and labour of the capital market. Karl Marx revolutionary ideas have been well recognised all over the world. His approaches have given food of though to various academician, writers and researchers. The Communist Manifesto was based upon the ideas of Friedrich Engels. Assumptions: Endless insecurity and agitation Revolutionary role of the bourgeoisie. Assumption of classes Endless insecurity and agitation: The basic assumption of Karl Marx was that oppressed class is always in the feeling of insecurity and agitation. This is the basis of revolutionary development of a working class. The society which Marx wished to attain was ideal society with ideal people. This was far away from the reality of life. Marx looked at the end of this restlessness, insecurity and agitation among people by developing the classless, equal society for all. This was to be achieved by abolition of the property and family systems and achieving the advancement of society. Marx mentioned two classes in the society. Wherein one is always exploited and the other always gets exploits. This class struggle continues till the lower class gains power over the upper class and replaces it. Revolutionary role of the bourgeoisie The bourgeoisie or the ruling class according to the Manifesto has the exploited the Proletarians or the working class. They have taken the fruits of their labours and exploited them to a level where this class struggled and gained power over other. The manifesto urged the working class to unite for their rights. These people are owner of the means of production mainly labour. They have rights to the entire surplus over the capitalist class. Assumption of classes In the Manifesto the clear division of two classes or the polarisation of two classes in the society is mentioned. According to Karl Marx there strata of society are "freeman and slave, patrician and plebeian, lord and serf...in a word, oppressor and oppressed." Marx and Engels share a view that this oppressed class is the working class which is the real owner of the profits rather than the capitalist class. Marx was in favour of abolition of all the classes, family system, rules and regulations of the capitalist society. The assumptions of ‘The Communist Manifesto’ were for the ideal society. In reality there is no ideal society. The abolition of class, differences, family systems or emotional bonding is not practically possible in our society. The motivational factor will go down if the profits produced are distributed equally and everyone is considered same in the society. Reference Jacobus L A; 2006 “ World of Ideas" Essential Readings for College Writers Seventh Edition. Bedforth St. Martins Read More