Posted 3 years ago on April 6, 2014, 12:12 p.m. EST by agkaiser
from Fredericksburg, TX
This content is user submitted and not an official statement
Race to the bottom: A term for dog-eat-dog competition by which countries compete by cutting wage levels so as to produce in the cheapest market, not by raising wages and labor productivity. The effect is to shrink the circular flow between producers and employee-consumers, leading to declining living standards. Under these circumstances productivity is increased only by working the existing labor force more intensively and cutting back medical insurance, old-age pensions and other social welfare expenditures. (See Free Market.)
The state of Alabama shows the inner contradiction inherent in this policy. When the state cut back educational and health spending in order to minimize taxes, ostensibly to attract business, global companies pulled out on the ground that its labor force was too low-skilled and in too bad health to compete in the modern high-technology world.
Reaganomics: An economic slogan for the policy of cutting taxes for the wealthy (and especially for real estate) while increasing the Social Security tax on employees. (See Tax Shift and Laffer Curve). The effect was to quadruple the public debt during the Reagan-Bush administration, 1981-92. In addition to tax cuts, Reaganomics dismantled environmental regulations and deregulated industry in general, producing a stock-market and real estate boom that was the precursor to the economic bubble of the 1990s. See Chicago School and Asset-Price Inflation.
Real estate: Originally "royal" estate, reflecting the idea that property is held on behalf of the ruler, who in turn is charged with responsibility for steering society's forward evolution. As property has become privatized, however, real estate has been turned into an economic cost for society at large, as its members are obliged to pay tolls for access to the land in the form of groundrent, while real estate investors and speculators seek capital gains.
Reality economics: A term for the study of economics subject to verification by empirical evidence rather than a body of abstract deductive assumptions by neoclassical and neoliberal economics that do not seek to be realistic. As Arthur Schopenhauer observed: "All truth passes through three stages. First, it is ridiculed; second, it is violently opposed; and third, it is accepted as self-evident."
excerpted from: http://michael-hudson.com/tag/the-insiders-economic-dictionary/