Question

According to David Kotz (2009), three important developments under Neoliberal Capitalism have led to a systemic crisis. Which of the following is NOT part of the three developments?

A. Growing inequality

B. A speculative financial sector

C. Growing national debts

D. A series of asset bubbles

Answer 1

According to the author the three important developments under the Neoliberal Capitalism which have led to a systemic crisis are growing inequality, speculative financial sector and asset bubbles.

Thus growing national debts are not part of the three developments. Making C the answer.

The three developments have led to exponential economic expansions but at the cost of eventual systemic crisis.

Inequality has increased because the difference between wages of employees and profits of employers have significantly increased.

The financial sector has become increasingly very speculative and is engaging more and more in risky activities in order to gain ever increasing profits.

Asset bubbles have increased uncertainty as the prices increase drastically beyond measure, which are then bound to decline.

Thus C is the answer.