Karl Marx's theory of communism starts with Capitalism where everyone starts out with their own money and some become rich but most become poor. But then to make things more fair the people would create a system of government called Socialism where the government would distribute everyone the same amount of money so everyone would be on an even playing field. Then eventually the people would create Communism where there would be no government needed and all people would agree to share the money evenly(www.youtube.com). Smith' theory of the invisible hand was that the government was too controlling. He said that if the government just let the economy run its course then everything would work out fine. He realized that if people needed money they would start selling a product such as bread. so once someone realized that that was a good idea another person would start a bread store. But to compete for more customers they would have to lower there price or make a better product. Then there would be supply and demand for bread and the small store would have to expand and hire workers (the poor) to supply bread faster. Therefore this would benifit the poor very well.
In my opinion Smith's invisible hand theory is the best. I believe that this is a good solution to solving the economy and helping the poor because there really is no flaw in this theory of supply and demand. The most wealthy people will be the business owners of course but the more rich that they get the more they are going to have to supply there product which means more and more jobs for people without one. I do not believe that there is an alternative way to run the economy, this is the fairest and most reasonable way I can think of!
