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Issue: American History
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Date added: March 6, 1996
No of pages / words: 3 / 745
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Smith also viewed capital improvement as being the proper central aim of the economic and political system. A major difference between Adam Smith's view of economics and that of present day capitalist theory is that Adam Smith viewed value as a product of labor, and thus operated under the Labor Theory of Value, which was used by basically all economists until the Labor Theory of Value became central to Marxism...
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Marx also observed that some people bought commodities in order to use them, while others bought them in order to sell them on at a profit. Marx defines "capital" as money and "capitalist production" as the use of money to denominate wealth in money terms; these labels refer to John Stuart Mill's definition of value in a market economy as being the going price for a good or service...
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