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Early Capitalism, Smith, Malthus, Marx and Engels

Early Capitalism, Smith, Malthus, Marx and Engels

Early Capitalism and Economic Thinking
	Throughout the ages societies have struggled to find the perfect economic system.  While economists may still be searching, countries like the U.S. have settled for capitalism. However, in the mid-1800s, when capitalism was still struggling to earn its wings, many philosophers foresaw capitalism as collapsing.  Adam Smith felt that the growth of the market in a capitalistic society would eventually to come to a halt (Heilbroner1 67). Thomas Malthus saw inevitable doom in capitalism due to the rapid growth of population exceeding the growth of subsidence (Malthus 13).  And finally, the infamous Karl Marx and Friedrich Engels called for the proletariats to rise together and form a communistic society because capitalism was destined to be the cause of its own demise.
Basic Institutions of Capitalism
           The foundation of capitalism is the based on the idea of private property and free markets. Individuals are allowed to own property and are encouraged to follow their own self-interest by selling their property in order to increase private capital (Colander 29).  From this ensues the “profit motive” generating a natural drive in society to maximize income by

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