Labor had an important role to play in the development of a capitalistic society. This is the belief of a man named Adam Smith. His view on the issue of labor, in his time, is illustrated in THE WEALTH OF NATIONS. The role of labor is independent on the economy because for an economy to exist, laborers must work. Another economist, by the name of Karl Marx, held a different perspective on the importance of labor. Smith’s plan pertains to the development of capitalism because it involves the main characteristic of a capitalistic economy.
Labor was the source of income for the laborers. During Smith’s time every economic issue is based on private ownership of means of production and on individual freedom. In able for a business to prosper, they must have laborers to work for their business. These owners have individual freedom which allow them to have free enterprise (one main characteristic of a capitalisitec society). It also allows to hire people to work for their company. “The number of useful and productive laborers, it will hereafter appear, is everywhere in proportion to the quantity of capital stock which is employed in setting them to work…”(Wealth of Nations 105). The laboreres (people that work for that certain industry) in return get a minimal income, just barely enough to survive.
Labor, for certain individuals, was the key to survival. “If the laboring poor therefore, could bring up their families[enough income] then, they must be much more at their ease now…”(Poor of the Poors 288). As for the production owners, labor is the key to the survival of the business. Without the required labor, thier company would not be in a good potential state. In able for the industry to run, someone must be their to run it, labor-wise. Even though labor gas diferential meanings for the poor and the production owners, it plays the same role for both. Tat role is survival. In able to survive, both person and industry, much labor is needed. Without labor there will be no means of production for the industry and no income for the poor.
Karl Marx’s view on labor was quite distinct from Adam Smith’s perspective. Marx is against the idea of hard labor because he does not like the idea of rapid progress and expansion of markets, which is the basic concept of capitalism. Marx looks with a comunistic point-of-view. He believes that labor leads tooppression of laborers. Marx views labor as disastrous for the laborers, whereas Smith believes that it is the key to survival.
Adam’s plan for industry is relevant ot the development of capitalism in the world because Smith speaks of production owners, who has private ownership, and how they hire laborers to work for the business. Also, the industry is based on a market economy. Having laborers to do labor makes a business and gains profit. This is the basic means of income for both the businesses and the laborers. Also it is the basic concept of a capitalistic society. “Capitalism exist through a market economy, which exist through laborers, who exist because of the production owners.” (Capitalism and Society 166). So, there is a business, whith laborers who use capital to run the business, and the owner. That sums up a capitalistic society.
Simply, Marx believed that labor had an important role. Its role was sruvival for the laborers and the business. THE WEALTH OF NATIONS by Adam Smith illustrates haow and why labor is relevant to the develpment of a capitalistic society. His views did not pertain to that of Karl Marx. That is because Marx’s viewed ina communistic way, whereas Smith foresaw lbor in a capitalistic way. Adam thoroughly explains his plans for industry and its relevance to capitalism which leads to the reason why labor is a key to the development of a capitalistic society.