Interesting Definitions From The Wikipedia II

Yes, It’s a sequel, another bunch of scary definitions from the Wiki in no particular order.

Moral Hazard

“Moral hazard refers to the prospect that a party insulated from risk (such as through insurance) will be less concerned about the negative consequences of the risk than they otherwise might be; for example, an individual with insurance against automobile theft may be less vigilant about locking the car[1] even though locking the car is a simple risk reduction strategy. Moral hazard arises because an individual or institution in a transaction does not bear the full consequences of its actions, and therefore has a tendency or incentive to act less carefully than would otherwise be the case, leaving another party in the transaction to bear some responsibility for the consequences of those actions.”
“Logrolling (or horse trading in British English) is a colorful phrase used to describe trading of votes by legislative members to obtain passage of actions of interest to each legislative member. The term is also used for similar activities in academics, notably the “cross quoting” of papers in order to drive up reference counts”
“In economics, crowding out theoretically occurs when the government expands its borrowing to finance increased expenditure, or cuts taxes (i.e. is engaged in deficit spending), crowding out private sector investment by way of higher interest rates. To the extent that there is controversy in modern Macroeconomics on the subject, it is because of disagreements about how financial markets would react to more government borrowing.
If increased borrowing leads to higher interest rates by creating a greater demand for money and loanable funds and hence a higher “price” (ceteris paribus), the private sector, which is sensitive to interest rates will likely reduce investment due to a lower rate of return. This is the investment that is crowded out. The weakening of fixed investment and other interest-sensitive expenditure counteracts to varying extents the expansionary effect of government deficits. More importantly, a fall in fixed investment by business can hurt long-term economic growth of the supply side, i.e., the growth of potential output.”
Pork Barrel Spending
“Pork barrel politics refers to government spending that is intended to benefit constituents of a politician in return for their political support, either in the form of campaign contributions or votes. The term is thought to have originated on Southern United States plantations, where slaves were allocated the unwanted remainder of slaughtered pigs, or the “pork barrel.” Typically it involves funding for government programs whose economic or service benefits are concentrated in a particular area but whose costs are spread among all taxpayers. Public works projects and agricultural subsidies are the most commonly cited examples, but they do not exhaust the possibilities. Pork barrel spending is often allocated through last-minute additions to appropriation bills. A politician who supplies his or her constituents with considerable funding is said to be “bringing home the bacon.”

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