Notes on Groupthink, Globalization, and Economic Power

Vocabulary flashcards covering key concepts from the lecture on groupthink, globalization, and economic power.

Groupthink

The tendency for members of a group to seek consensus and suppress dissent in order to maintain harmony; a herd mentality.

Herd behavior

The tendency of individuals to imitate the actions of a larger group, often ignoring personal information.

MAGA (Make America Great Again)

Trump-era movement advocating nationalism, immigration limits, and protectionist trade policies as a response to globalization.

Globalization

Process of increasing cross-border trade and integration; supported by free trade and interconnected supply chains, but met with political backlash in some regions.

Comparative advantage

Economic idea that countries should specialize in producing goods where they have lower opportunity costs, enabling gains from trade and complex global supply chains.

Supply chain

Network of producers and suppliers across countries that collectively produce a product (e.g., semiconductors moving through Netherlands, Taiwan, Brazil, Asia).

Zeitgeist

The spirit of the time; the prevailing ideas and mood shaping people’s thinking in a given period.

Hawai (Hawaa)

Hindi term for the mood or sentiment of people; equivalent to zeitgeist.

Brexit

Britain's decision to leave the European Union; used to argue against globalization and immigration and linked to the rise of European right movements.

European Union (EU)

Political and economic union of European states with features like free movement of goods and people; some member states use a common currency (Euro).

Euro

Common currency used by many EU members; part of a monetary union that affects trade and macro policy.

Immigration

Movement of people across borders; a highly salient political issue linked to globalization and right-wing populism.

Right-wing

Conservative or nationalist political ideology emphasizing sovereignty, immigration limits, and skepticism toward free trade and globalization.

Tariff

Tax on imported goods used to protect domestic industries or influence prices; can raise consumer costs.

Protectionism

Economic policy to shield domestic industries from foreign competition through tariffs, quotas, and other barriers.

Great Financial Crisis (GFC) 2008

Global financial meltdown triggered by the housing market collapse and subprime lending; led to large bank bailouts (e.g., TARP) and widespread policy responses.

Subprime

Loans to borrowers with poor credit; higher risk of default; central to the housing bubble and subsequent crisis.

Freddie Mac

US government-sponsored enterprise that buys mortgages from lenders to increase liquidity andguarantee mortgage-backed securities.

Fannie Mae

Similar to Freddie Mac; helps finance housing by guaranteeing and securitizing mortgages.

College premium

Wage advantage that college graduates earn over non-graduates; the gap has widened over time, contributing to income inequality.