The Canadian Economy- Smith or Marx Theory?

The economic concepts that were visualized by Adam Smith and Karl Marx lead to the idea that Canada fits towards both quite well. Their concepts are reflected quite clearly in the economic situation of Canada, and the theories of both can be applied. In a way, both Marx and Smith would be pleased with the economy of Canada, as it lends to their ideas and presents a positive economy for Canadian residents. While some may argue that Canadian economy should be a bit more as their southern neighbor the United States, it is also argued that Canada's mixed economy provides a perfect blend of corporate and government responsibility.

When it comes the Smith's theories, the one that stands out the most would be his theory of the "invisible hand". This "hand" controlled the economy by driving prices down through competition and resources. This metaphorical "hand" exists today in Canada, as the citizens benefit from variety. The variety of products and services available almost always leave room for an alternative, which is what, in effect, forces prices to be lower. Canada's "invisible hand" may take the modern form of technology, as it affects the means by which products are produced. If for instance, a new mode of manufacturing Product A is formulated, and it allows Product A to be manufactured at a lower price, then the price of Product A will be cheaper. This causes the competitive price to drop, which allows consumers to benefit from lower prices. The division of labour does exist, however not to the intensity Smith stated in his theory. In companies today, there is a specialization of a sort to specific positions, but usually it is not to one specific task, but to an area. There are, however, exceptions, such in factory work, when an employee may do the same job for a long period of time. The specialization of workers is, in fact, a management technique. Fredrick Taylor, occasionally called the "father of scientific management" developed the concept that for every job a specific rule of motion and training should be developed in order to increase and achieve maximum productivity. Smith felt that slavery was an improper use of human resources, as there was no internal drive in a worker who basically worked for nothing. He would be impressed by the fact that there is no slavery in our economy and that it is actually against the law. This can lead back to companies working in our economies, because it plays toward the personal drive of employees. Employees who receive an incentive are more likely to want to work harder to output more. The idea of mercantilism barely exists in our society, which is another thing Smith would like, because our economy does value what he believed determined a country's wealth. Natural, Human and Technological resources are three of the largest factors that determine how well our society does. Free trade is a huge concept of Smith that is greatly into play today. Canada's interdependence is so greatly obvious, and the concept of an open market is something that even the government takes pride in, as they often include it on websites trying to encourage outside investment. Free trade is so large a part of the economy that even agreements, such as the North American Free Trade Agreement (NAFTA), exist and Canada belongs to groups such as the World Trade Organization (WTO).

Marx would also be pleased with the Canadian economy, as it also reflects many of his economic theories. His concept that socialism and capitalism could co-exist is in a way reflected by the Canadian mixed economy. Both social and capital economies are combines and found in the Canadian economy. For instance, while the government does play a substantial role, companies are privately owned and operated. The division of labour exists, and does so for the exact reason Marx expressed. The division of labour leads to different jobs, which leads to different products available for consumers. The Labour theory exists in a way, and one could argue that markup is in a way the "worker exploitation" and that the labour theory may have basis when determining the base price of the good/service. Surplus value does exist, however it may not be labeled surplus value. If one examines wages as an expense, the one can say that since Sales-Expenses= Net Income/Loss, it can be stated that Sales-Wages=Profit. This modern concept of profit is closely comparable to the concept of Surplus value. One thing Marx would be glad to see has not truly occurred was his concept of alienation. While there are many tedious and repetitive positions being held by Canadian workers, most jobs are not of that nature. Most jobs allow for change and a bit of "breathing room" when it comes to being stuck in the same monotonous