How do the economic theories of Adam Smith and Karl Marx differ in their views on human nature, labor, the role of the state, progress, and capitalism, and how have these ideas influenced modern economic thought and policy?

This research paper examines the work of two of the most famous contributors of modern economics: Adam Smith and Karl Marx. Set in the wider backgrounds of Enlightenment and Industrial Revolution, the paper makes a thematic comparative study of the main concepts developed, such as human nature, labor and value, the role of the state, vision of progress and criticisms of capitalism. Based on the original sources: the Wealth of Nations and Das Kapital, but with a broad selection of secondary sources and statistics this paper will explain how the ideas propounded by Smith on the necessity of free markets, economy of specialization and the self-interest differ strongly with Marx’s vision on class conflict, surplus labor and exploitation that exists in capitalism. The paper also looks at their perennial legacies in modern economic systems with respect to the neoclassical economic school and liberal capitalism in reference to Smith, and socialist theory, heterodox economics and inequality commentary debates in regard to Marx. Due to the use of data-driven graphics and historical study, the study highlights that the debate concerning market regulation, inequality, and the changing role of a state in global economics still includes both Smith and Marx. Instead of portraying their thoughts as incompatible, the paper argues that a comprehensive understanding of modern economics requires an inclusive approach that draws on the insights of both intellectuals.