Examine citically the ways in which Marxist Theory seek to establish a Essay

Examine citically the ways in which Marxist Theory seek to establish a relationship between Law and the Economy - Essay Example From the Instrumentalist point of view, capitalism and its effects on the working class is dependent upon the ruling class’ distribution of economic power. The economic base is understood to be accountable for determining all other social institutions such as criminal law, religion and the media. The media conveys mass communications that help maintain capitalism and historical documents assume that the wisdom of any time period is generally held by the ruling class. Business owners, the rich and the government, including the judicial system, control cultural structures to maintain the status quo which enables them to retain an element of supremacy. Thus, Capitalists’ power depends on the making and enforcement of the prevailing law. Instrumentalists assert, however, that the capitalist state must be relatively autonomous in order to best serve a capitalist society. â€Å"Its relative independence makes it possible for the state to play its class role in an approximate ly flexible manner.   If it really was a simple instrument of the ruling class, it would be fatally inhibited in the performance of its role.   Its agents absolutely need a measure of freedom in deciding how best to serve the existing social order.†2 Instrumentalists contend that the state works as an intentional and planned instrument for the supremacy over society: â€Å"Instrumental exercise of power by people in strategic positions who either manipulate state politics directly (direct instrumentality) or through the exercise of pressure on the state (indirect instrumentality).†3 While Marxist theorists agree that capitalism provides for the well-being of the social elite by the exploitation of the working class, some differ in their rationalizations of how a capitalist nation accomplishes this.   Instrumental Marxism views law as a tool of the ruling class

The Fiscal and Monetary Policy and Economic Fluctuations Essay - 3

The Fiscal and Monetary Policy and Economic Fluctuations - Essay Example Interest-rate targets are a vital tool when dealing with variables like inflation and unemployment. Adjustments on the rates are made to keep inflation within a target range so as to ensure economic growth and therefore safeguarding economic momentum. The key reasons for changing interest rates are; to give the economy a short run boost so as to lower interest rates. And to make up for a loss as a result of the interest being subjected to taxation this is achieved by increasing the interest rates Demand side policies and Supply side policies are two strategies that create economic growth by encouraging people to spend money (Mikek, 2000). These strategies base on fiscal policy that is a general term referring to the federal government tax and spending policies. And monetary policies that refer to the actions of the central bank to achieve macroeconomic objectives like; full employment, stable economic growth and price stability. Demand side policies basing on fiscal policy decreases unemployment by helping to increase economic growth rate and aggregate demand (Siu, 2004). With a higher level of the demand and a high economic growth, the level of bankruptcy in firms will go down leading to fewer job losses. Nevertheless, demand for workers will increase thereby lowering demand deficient unemployment. Demand side policies play a role in increasing economic growth rate. However, if the economy is already stable, a further increase in AD will cause inflation and therefore increase in interest rates. Demand side policies based on the monetary policy involves cutting interest rates that lead to decrease in the cost of borrowing and also encouraging people to spend and invest. This increases both GDP and AD thereby reducing demand deficient unemployment (Mikek, 2000). Lower interest rates reduce saving incentives, and mortgage