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May 25, 2023This week’s theme
Metaphors & idioms
This week’s words
Illustration: DALL·E AI
A.Word.A.Daywith Anu Garg
noun: A reduction in value.
From Old English hǣr + Middle English cutten. Earliest documented use: 1955.
The term haircut is used metaphorically in many ways, such as when assessing the value of an asset pledged as collateral against a loan. For example, a bank might decide that an asset worth $1000 could take a 20% haircut and thus be used to secure a loan of at most $800. The term is also used for other reductions: a pay cut, a cut in benefits, a reduction in the repayment of a loan, etc.
“The latest projections point to an 11% haircut for Medicare and a 23% one for Social Security when their trust funds run dry.”
Third-Rail Thriller; The Economist (London, UK); Apr 15, 2023.
See more usage examples of haircut in Vocabulary.com’s dictionary.
A THOUGHT FOR TODAY:Stop fixing your bodies and start fixing the world! -V (formerly Eve Ensler), playwright and activist (b. 25 May 1953)
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