Keynesian and Marxism Economics
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...... The Keynesian response to a depression is to stimulate the economy through a reduction in interest rates and government investment in the infrastructure. Government investment creates jobs, providing more money that can be used to stimulate the economy by the people. The key principle is that the initial investment starts a cascade of events that lead to overall economic growth (Binder, 2002). However, in practice, there are many variables that can affect the ability to Keynesian economics to promote economics growth. In its most basic form, Keynesian economics fails to account for many of these variables. It would be argued that Keynesian economics are too simplistic to be effective in a realistic sense
Marxian Economics
Marxian economics theories are based on the writings of Karl Marx. Marxian economic theories differ from and do not depend on his political works. Marx argued that the most important aspect, and perhaps only justification for its existence, was that it stimulated the rapid growth and productivity. Marx felt that population growth tended to push wages to a subsistence level by providing an over-supply of labor. Marx placed a high degree of importance on the connection between population growth and subsistence level wages......
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