Describe how the marxist school of thought would respond to the following scenar
ID: 1127020 • Letter: D
Question
Describe how the marxist school of thought would respond to the following scenario:
The economy has experienced a sudden collapse of asset prices, with the stock, real estate, and commodity market experiencing declines of over 50 percent relative to last year. Data show a loss of nearly 1 million jobs since last month, which brings to year-to-date loss of jobs to nearly 5 million. And, bank lending has slowed sharply, and initial data on investment suggests a sharp decline in new projects. The central bank reports that that bank balance sheets have deteriorated significantly, and it is contemplating emergency monetary actions. The country's Prime Minister claims to be "on top of the situation," but polls suggest her popularity is falling fast as confidence in the government's economic leadership diminishes. This appears to be the start of a serious recession, with the rate of decline in production rivaling the rapid declines in 2008 and 2009.
Describe clearly, or use diagrams, or other specified models to describe how they would handle the situation.
Explanation / Answer
The marxist will recommend state control of property, takeover of firms and companies by govt, social control of production, increase in state expenditure to absorb unemployed labour, takeover of management of firms by govt, agriculture cooperatives, removal of inequality and so on