Diplomacy & Politics Glossary

Karl Marx's concept describing workers' estrangement from their labor, products, and self under capitalism.

An ideology prioritizing domestic control of the economy, labor, and capital formation, often through protectionist policies and opposition to globalization.

Friedrich Hayek's argument that government control of economic decision-making leads to loss of freedom and totalitarianism.

An economic theory emphasizing total spending in the economy and its effects on output and inflation, advocating government intervention during recessions.

Government policy of increasing public spending or cutting taxes to boost aggregate demand and combat economic recessions.

A situation where monetary policy becomes ineffective because interest rates are near zero and savings rates remain high, limiting economic stimulus through traditional channels.

The process through which changes in monetary policy affect the economy, including interest rates, investment, and inflation.

Analysis of how capital accumulation leads to increasing wealth inequality over time in capitalist economies.

The analysis of how the rate of return on capital exceeding economic growth leads to increasing wealth inequality over time.

An economic system combining free-market capitalism with social policies that establish fair competition and a welfare state.

An economic theory positing that benefits provided to the wealthy or businesses will eventually benefit broader society through investment and job creation.