gothcactus 
But whereas most ‘Western’ economists don’t read Adam Smith, Marx read the Wealth of Nations in great detail.
Current reading John Ross on China in his collection of essays in China’s Great Road.
One of the most interesting sections in the beginning is his debunking of the commonly perceived Marx vs. Smith opposition when in reality the two economists had many similarities. In fact, Marx took some of Smith’s ideas and built further upon them in Das Kapital. Here I outline some of the notes on these similarities and connections.
- Concept of Division of Labor <==> Socialization of Labor
- Adam Smith is known for his idea of “division of labor”. This is well-known in mainstream economics.
- Further, Smith writes in WoN: “The greatest improvement in productive powers of labour, and the greater part of the skill, dexterity, and judgment with which it is directed, or applied, seem to have been the effect of the division of labour”.
- Essentially, he is making the key point that division of labor is the biggest factor in improving productivity
- Marx used this concept but termed it “socialisation of labor” or “socialised production”
- Smith was not the first to create the concept of DoL, but made the key observation that it was the main factor in increasing productivity, hence overall economy. So he became famous for this concept.
- Marx built upon Smith’s original concept with more clarity
- To say that Smith and Marx are on opposite ideological sides is false
- On Globalization
- Marx made it clear that the main consequence of the socialization of labor is that all parties of production become increasingly more dependent upon each other
- For example, the increasing importance of the R&D sector is a direct result of the socialization of labor where production depends on the development of new technologies, technicalities, skills, etc. of others
- Globally, each country becomes more dependent upon other countries
- The bigger the market, the larger the possible division of labor
- Smith supported globalization for this reason, as he believed a smaller market limited DoL
- Marx continued this concept and agreed with Smith on globalization
- Modern history example: USSR was closed off in contrast to China
- Data and studies show that Smith & Marx were correct in their theories of openness contributing to economic development
- Marx made it clear that the main consequence of the socialization of labor is that all parties of production become increasingly more dependent upon each other