Question

Compare and contrast Smith’s, Ricardo’s, and Marx’s theories of accumulation. What are the important concepts that...

Compare and contrast Smith’s, Ricardo’s, and Marx’s theories of accumulation. What are the important concepts that are adopted by all three? How do they differ in terms of the long-run implications of capital accumulation?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Ans:

Adam Smith stated that :

1. Growth is directly related to the investment i.e. more the investment the more is the economic development of the country is and vise versa.

2. The farmers , producers and the businessman are the main agents of growth which means due to the activities of these people the economic development takes place.

3. Th economic development takes place through the division of labour which is further made possible by the accumulation of the capital and expansion of the market, increases national income and output, which in turn facilitates saving and further investment thus economic development rises higher and higher.

Ricardo stated that:

1. Growth is directly related to the rate of capital accumulation which is the wealth of the country employed in production, food , raw material , machinery etc.

2. The capacity to save and willing to save act as a agent for capital accumulation which further act as agents of growth.

3. The economic development takes place through the free trade as it provides vast opportunities of investment to capitalists.

.Marx stated that :

1. Growth is related to the capital accumulation in the economy in which profits are reinvested into the economy , increasing the total quantity of capital .The capital is converted into profits through human labor.

2. The capital  accumulation is done through various sources these are accumulation from production by realisation of profit through sales, reinvestment of profit income in production, production of new products with value added, and accumulation is also done with aid of bank credit, liquid deposits , securities, tradeable products , real assets etc. which act as an agent of growth.

3. The economic development take place through both the financial and non financial accumulation of capital .  

Add a comment
Know the answer?
Add Answer to:
Compare and contrast Smith’s, Ricardo’s, and Marx’s theories of accumulation. What are the important concepts that...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT