In what way do the theories of Adam Smith and Karl Marx differ?

The theories of Adam Smith and Karl Marx fundamentally differ in their views on ownership and the role of the economy in society, which is accurately captured in the selected answer. Adam Smith, often referred to as the father of capitalism, advocated for private ownership of businesses as a means to promote individual entrepreneurship and economic growth. His belief in the "invisible hand" suggests that when individuals pursue their own self-interest in a free market, they inadvertently contribute to the overall economic welfare of society.

In contrast, Karl Marx introduced the concept of communism, which advocates for the collective or state ownership of the means of production. Marx critiqued capitalism for its inherent inequalities and exploitation of the working class. He envisioned a classless society where production is owned communally and wealth is distributed according to need, rather than profit.

This distinction between private ownership in capitalism and communal ownership in communism underscores the foundational ideological divide between Smith and Marx regarding how economies should be structured and who should control economic resources.