BitMaster_1980: Third alternative: it's clearly tongue in cheek and so obviously over the top that neither of your two alternatives should really be considered by a reasonable person. It's even got 'whimsy' as part of the core features. As well as Kaiju and wood chippers.
Well, the developer apparently disagrees:
“The idea for the game came from a multitude of places,” Ted Anderson, an artist with game developer Pixel Pushers Union 512, told Variety. “For one my own politics. I’m a socialist and I’ve never seen an unapologetically left-wing game ever and I played games my entire life. So I started thinking, what would be an interesting way to tackle that as a topic.
And the fact that Variety of all places writes about it implies that he actually means it.
So case closed, it is actually option number 1.