Written Analysis Week 2

1. In your view, which of the economists discussed by Heilbroner and Thurow provides the most
convincing portrait of capitalism? Briefly compare that view or analysis to the perspective of one of the
other thinkers

According to the reading “Marx was the intellectual prophet of capitalism as a self-destructive system:
John Maynard Keynes was the engineer of capitalism repaired”. This quote leads me to understand
that capitalism grew and changed throughout the years. As the economy grew, we understood that
the markets had drastic changes. Technology changes the market and continues to build wealth and
capital for certain organizations within the society. With this being said, I believe that John Maynard
Keynes had the most compelling portrait of capitalism, simply because I believe he understood how
capitalism changed and grew the market whereas Smith’s and Marx missed the ever-growing factor of
technology and its vast effects on the economic market. I feel that Smith’s interpretation was simple, I
don’t feel as though Smith was at fault as the idea behind his process was betterment of each
individual, he explained a job seeker could only find a job in the going wage, an employer could only
pay the going rate, this form of capitalism established the market and found stability as people could
not compete. Adams may have developed the theory, but Marx was the one who changed it to be
relevant for changing times. Marx makes it clear that capital accumulation must overcome the
uncertainty of the market and also has to rely on the demands of opposing labour and capital. Marx
predicts and sees that tumble of the market and with the tumble he explains the reasoning for small
businesses in that economic state failing. He predicts two groups, a small capitalist group with heavy
control over the labor market and a larger class of people who are the backbone of labour. You can
argue that Smith’s approach allowed the system to generate its own prosperity, while Marx stressed
instability and crisis at every turn. Which in our case, especially during the past two years has been a
common trend in our markets? Keynes approach may have the basis of both Marx and Smith, but it’s
still considered far removed from both. His idealism was based on government spending and the
recovery of the economy post-depression or recession. The question was posed at the end of the
article, which great economist was correct. All three had solid arguments and described capitalism in
forms that were prevalent, however, in my opinion the most compelling is John Maynard Keynes. I
believe that being the most recent of the three economists has experienced the most drastic of
changes in the market. Seeing the industrial revolution, the crash of markets and the fluctuation of
assets, he understood best on how to combat economic crisis. His theory therefore allows successful
applications in the modern capitalist society we currently live in. Whereas if we took the approach of
Marx or Smith, we would be focused on individual capital gain and lose sight of supporting the greater
economy.