The Moral Content of Economic Terminology

Some of these are amusing in a subtle sort of way. I'll explain below.

The moral content of economic terminology in the popular press: A guide

Foreign direct investment (inbound): Good
Current account deficit: Bad
Trade deficit: Catastrophic
Capital account deficit: Not used. Presumably bad.

Weak national currency: Bad
Exports: Good
Imports: Bad

Rising house prices: Good
Falling house prices: Bad
Affordable houses: Good
Unaffordable houses: Bad

Free trade: Neutral
Unfettered free trade: Bad
Fair trade: Good
Outsourcing: Evil
Buying local produce: Divine

Pay rises: Good
Low interest rates: Good
Inflation: Bad

Communism: Very Bad
Socialism: Bad
Capitalism: Bad

Three sets of these terms and their "moral content" strike me as humorous if you understand the ramifications of economics. (When I've taught Econ I've stressed to my students that one change in the system often leads to other changes, frequently in a specific pattern.)

Weak national currencies are "bad," but they help to increase exports, which are "good," and reduce imports, which are "bad." That, in turn, helps to reduce a country's current account deficit ("bad") and trade deficit ("catastrophic"). So are weak national currencies necessarily "bad?"

Rising house prices are "good," but in the long run they create unaffordable houses, which is "bad." Likewise, falling house prices are "bad," but create affordable houses in the long run, which is "good." So, which is more important, rising house prices or affordable houses?

Last, pay rises are "good" (I certainly wouldn't complain), but they also lead to inflation (of the price/wage spiral variety), which is "bad." Likewise, low interest rates are "good" (they help to stimulate the economy by increasing the amount of loans businesses ask for), but that increases the money supply, which causes inflation. So, are pay rises and low interest rates both "good?"

Originally posted at Bluematter; HT: Economist's View