Economics πŸ’ΈπŸ€‘

Economics Dictionary

This economics dictionary and lexicon is a work in progress, so please pardon the dust — I’ll be adding to it over time. The goal is to democratize the esoteric language of economics, and arm more people with the tools to understand policy decisions — and identify bad ones.

Economic literacy ought to be a core life skill taught in schools. How is one to succeed in a system one cannot even begin to fathom unless born into wealth, or unusually driven to acquire it?

See also:

TermDefinitionNotes
3% service chargeThere's a loophole allowing businesses to pass on the credit card processing fee to their customersCredit card companies eat up 3% of our whole economy, just to exist.
banking regulationsBanks are required to follow the law to ensure a fair monetary and economic system for all.* Sarbanes-Oxley* Dodd Frank * Durbin Amendment
Big PhilanthropyThere are concerns about the concentrated control of philanthropic capital by the world's oligarchs as applied in the direction of their own interest, vs. a more broadly distributed economy in which progress is shared and philanthropic capital is distributed more broadly and locally within the affected sectors and regions.Recently, I spoke with Morris Pearl, who in 2014 retired as a managing director at BlackRock, the asset-management firm, to become chairman of the Patriotic Millionaires, a group of wealthy advocates for higher taxes on the rich, which was organized in 2010. (The membership now numbers about two hundred and includes Norman Lear, the TV producer, and Leo Hindery, Jr., a private-equity executive who has for years supported closing the carried-interest loophole.) I asked Pearl whether philanthropy mitigated the need for reform. *β€œWe need to make collective decisions by our elected representatives on how to spend our money,” he said. β€œIt’s not up to each individual person to decide how to spend the money.”*
bitcoin
carceral stateA shift from handling the problems of homelessness and poverty via the social safety net and social democratic policies of wealth redistribution, to removing state funds from social services and criminalizing aspects of being poor β€”relegating the problem of income inequality to a police matter.Compare cost of incarceration vs. cost of affordable housing, rehabilitation, treatment, and crime prevention expenditures
carried-interest loophole
Common CoreSweeping educational reform program proposed by the Gates Foundation that advanced very quickly through the federal government and all 50 states with the effect of enacting new testing requirements for most grade school students.
corporate tax rateCorporate myth that the corporate tax rate is too high.Classic example of β€œlying with statistics.” Warren Buffet claims it's a myth.
credit rating
cryptocurrency
demand curve
demand-side economics
derivatives
estate taxsee dropdown
Ethereum
fiscal policy
food stamps47 million Americans rely on food stamps. Forty. Seven. Million.
GDPsee dropdown
global povertyGary Haugen: Everyday violence is what thwarts our efforts against global poverty
inflation
interest rates
Kahn's multiplier
Keynesian economics
Kronos Effect
Laffer Curve
Living Wage gapThe Atlantic: State map & calculator
means testing
middle class
monetarism
moral hazardPrinciple-Agent problem
negative externalities
negative interest rates
Phillips curvegraph of the equation showing a trade-off between employment and the rate of inflation
portfolio diversity
poverty traps
Reaganomics
redliningThe practice of downgrading the creditworthiness in particular urban districts β€”often in downtown cores β€”that had the historical net effect of relegating β€œlow-income” black borrowers to abandoned city centers that withered in value vs. the more affluent, developed suburbs the β€œwhite flight” became privy to during the same time period.Many of the borrowers had migrated from the South to the North during and after Reconstruction, and found themselves either unable to secure home mortgages or hoodwinked into essentially fake housing contracts designed to fleece them of payments for some years before revealing that no equity had accrued and no recourse available to the β€œbuyer” (these deals would make subprime mortgage stinkers looks like paragons of virtue, by comparison) other than forfeit occupancy and start afresh somewhere else.White real estate moguls became enriched during this time β€”it was something of a cultural truism that one β€œhad to be dim” to not become wealthy from the fruits of this exploitation.
Say's Lawtheory that all income is automatically spentdisputed by Keynes
single playerMedicare for All -- a public health care option with health insurance at an affordable priceBacked by Bernie Sanders and other Democrats
stagflationlittle or no economic growth combined with inflation
stimulus
supply chain
supply-side economics
tax avoidance
tax inversionThe practice of relocating an American company's headquarters overseas in order to take advantage of tax loopholes allowing them to keep profits offshore and avoid paying U.S. taxes.Former Secretary of Labor Robert Reich on how to handle disloyal corporations: deprive them of the benefits of their citizenship.
Taylor's ruletheory showing the trade-off between interest rates and the rate of inflation
trickle-down economics
unemployment
welfare
white-collar crimeCriminal acts of fraud, theft, insider trading, racketeering, gambling, and other financial schemes on the part of finance, business, and government professionals of high status and respectability.financial torture devices of the rich* Comcast dumping hazardous waste http://consumerist.com/2015/12/15/comcast-hit-with-26m-penalty-for-dumping-hazardous-waste-and-revealing-personal-customer-info/?utm_source=twitter&utm_medium=socialflow* Martin Shkreli's Ponzi scheme life http://www.statnews.com/pharmalot/2015/12/17/why-martin-shkreli-arrested/* Wells Fargo* Steven Cohen pays $135m for insider trading http://www.nasdaq.com/article/steven-cohen-sac-reach-135-million-insidertrading-settlement-20161130-01241* Enron* Ponzi* Koch Brothers* what the robber barons of yesteryear got away with (JP Morgan, Rockefeller, Vanderbilts)