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The Canadian Economy Smith Or Marx Theory?

1256 words - 5 pages

The economic concepts that were visualized by Adam Smith and Karl Marx lead to the idea that Canada fits towards both quite well. Their concepts are reflected quite clearly in the economic situation of Canada, and the theories of both can be applied. In a way, both Marx and Smith would be pleased with the economy of Canada, as it lends to their ideas and presents a positive economy for Canadian residents. While some may argue that Canadian economy should be a bit more as their southern neighbor the United States, it is also argued that Canada’s mixed economy provides a perfect blend of corporate and government responsibility.

     When it comes the Smith’s theories, the one that stands out the most would be his theory of the “invisible hand”. This “hand” controlled the economy by driving prices down through competition and resources. This metaphorical “hand” exists today in Canada, as the citizens benefit from variety. The variety of products and services available almost always leave room for an alternative, which is what, in effect, forces prices to be lower. Canada’s “invisible hand” may take the modern form of technology, as it affects the means by which products are produced. If for instance, a new mode of manufacturing Product A is formulated, and it allows Product A to be manufactured at a lower price, then the price of Product A will be cheaper. This causes the competitive price to drop, which allows consumers to benefit from lower prices. The division of labour does exist, however not to the intensity Smith stated in his theory. In companies today, there is a specialization of a sort to specific positions, but usually it is not to one specific task, but to an area. There are, however, exceptions, such in factory work, when an employee may do the same job for a long period of time. The specialization of workers is, in fact, a management technique. Fredrick Taylor, occasionally called the “father of scientific management” developed the concept that for every job a specific rule of motion and training should be developed in order to increase and achieve maximum productivity. Smith felt that slavery was an improper use of human resources, as there was no internal drive in a worker who basically worked for nothing. He would be impressed by the fact that there is no slavery in our economy and that it is actually against the law. This can lead back to companies working in our economies, because it plays toward the personal drive of employees. Employees who receive an incentive are more likely to want to work harder to output more. The idea of mercantilism barely exists in our society, which is another thing Smith would like, because our economy does value what he believed determined a country’s wealth. Natural, Human and Technological resources are three of the largest factors that determine how well our society does. Free trade is a huge concept of Smith that is greatly into play today. Canada’s interdependence is...

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