Usage in Marxist Theory
Liquidationism is a term in Marxist theory which refers to the ideological liquidation of the revolutionary party program by party members. According to the Russian revolutionary Vladimir Lenin, liquidationism "consists ideologically in negation of the revolutionary class struggle of the socialist proletariat in general, and denial of the hegemony of the proletariat".
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Usage in Economics
An alternative use of the term Liquidationism denotes the heterodox Austrian school belief in economics that no actions to mitigate the effects of recessions should be taken by the government or the central bank, but, rather, that the "temporary pain" of companies being liquidated, on account of crises, is a solution in itself. In contrast mainstream economists think that ?we have every reason to think that governmental efforts to provide liquidity and fiscal stimulus, and to prevent the panic of contagion from collapsing the financial system, are warranted.?
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