The Lexicon
Words shape perception. This lexicon exists to document words and clarify how systems actually function.
Rehypothecation:
The reuse of collateral by a financial institution for its own borrowing or trading purposes.
Your assets can be used to support financial activity beyond your direct control. This practice increases liquidity in the system and also increases systemic risk.
Collective Bargaining
Negotiation between workers and an employer to determine wages, working conditions, and benefits.
Collective bargaining allows individuals to negotiate as a unified body, increasing leverage and securing better outcomes.
Union
An organized association of workers formed to protect and advance their shared interests.
A union transforms isolated workers into a coordinated entity with negotiating power.
Union Busting
Actions taken to prevent workers from organizing or to weaken existing unions.
Union busting preserves employer control by preventing collective leverage.
Strike
A coordinated refusal to work until demands are addressed.
A strike halts production and forces negotiation by disrupting normal operations.
Strike Fund
A pool of money used to support workers financially during a strike.
Strike funds sustain workers long enough to negotiate without financial collapse.
Fractional Reserve Banking
A system where banks lend more money than they physically hold.
This system expands the money supply and concentrates financial power within institutions.