Vernacular Discourse
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Euphemism
to use more socially favourable expressions instead of more plain-spoken or socially unacceptable ones; a common discursive strategy of politeness, and an ideological practice of concealing plain truth; from the Greek eu 'good, well' and pheme 'speaking'; the opposite of dysphemism
Dysphemism
to use disfavourable, plain-spoken or socially taboo expressions instead of more socially acceptable ones; a discursive strategy of plain or offensive speaking; from the Greek dys- 'bad, unfavourable' and pheme 'speaking'; the opposite of euphemism; also called tapinosis

Examples

Common Euphemisms and their Dysphemisms
In Society
heavy
making love
put to sleep
passed away
lady of the night
the adult entertainment industry
fat
fucking
euthanize
died
prostitute
the pornography business
In Business
downsizing
accounting errors
under-performing assets
firing people
fraud
debts
In Politics
I misspoke
economical with the truth
the economically disadvantaged
enhanced interrogation techniques
You lied
lies
poor people
torture

Purpose

Politeness & Politics
Euphemism and dysphemism have contrary purposes. As politeness strategies, euphemism minimizes social embarrassment or offence to others. Dysphemism increases these, sometimes for comic effect.

As political strategies, euphemism minimizes social embarrassment, usually to protect the speaker rather than the audience. The protection hides unpleasant truths in inoffensive and ambiguous words. Dysphemism deliberately embarrasses speakers of euphemisms and may castigate their conduct.

Euphemism and dysphemism are modern names for figures that amplify and depreciate. They share similarities with auxesis, hyperbole and litotes.

Usage

What's in a Name?
The general practice of euphemistic and dysphemistic speaking is to choose words to maximize or minimize offence, or for comic purposes. We must therefore use these very emotive figures carefully.

We must also consider social contexts - politeness requirements, the relationship between speaker and audience, the acceptability or otherwise of plain speaking - when using euphemism or dysphemism.

Language is always ideological. And ideology begins with naming or labeling things. As politeness strategies, euphemism and dysphemism tussle like tug-of-war teams.
Euphemism
(less offensive, more figurative)

poo
jolly
bottom
restroom
self-pleasure
between jobs
Orthophemism
(more formal & objective)

faeces/stool
inebriated
buttocks
toilet
masturbation
unemployed
Dysphemism
(more offensive, less figurative)

shit
pissed
ass
crapper
wanking
on benefits
P.G. Wodehouse

Bertie:             What sort of chap is he?

Jeeves:            A somewhat curious character, sir. Since retiring from business he has become a great recluse, and now devotes himself almost entirely to the pleasures of the table. (euphemism)

Bertie:             A greedy hog, you mean? (dyphemism)

Jeeves:            I would not perhaps take the liberty of describing him in precisely those terms, sir. He is what is usually called a gourmet. (euphemism – in this context)

Euphemism & Comedy
We can use euphemism and dysphemism comically, especially with wordplay like double-entendre.
The News Quiz, BBC Radio 4, 19 June, 2015
Discussing Jeb Bush running for president

Calman:          There's probably been too many Bushes in the White House already, which begs the question how many Bushes are too many Bushes in the White House.

Zaltzman:       There are three more (Bush) siblings.

Toksvig:          All boys, or are there some girls?

Zaltzman:       There are some girls.

Toksvig:          Are there lady Bushes?

Euphemism & Dysphemism, Names & Labels, Ideology & Politics
We probably speak most euphemistically or dysphemistically in broadly 'political' situations. The names or labels we choose, or society uses, for things say much more about us and societies than the things they name and label. They reveal our political positions and ideologies. This video makes this point powerfully.
I Am NOT Black, You are NOT White, by Prince Ea, 2015
(Also contains alliteration, anadiplosis, anaphora, antithesis, assonance, apophasis, asyndeton, dialogismus, epiplexis, epistrophe, metaphor, parallelism, repetition, tricolon)
Policy-makers and leaders always positively self-represent and attempt to lessen negatives through euphemism. But their opponents and  the public will likely use dysphemism.
George Orwell
Political language is designed to make lies sound truthful and murder respectable, and to give an appearance of solidity to pure wind.
Opponents counter political 'pure wind' with dysphemisms. 
More Euphemistic
friendly fire
assisted dying
senior citizens
regime change
climate change
collateral damage
extreme rendition
protective custody
ministry of defence
inconsistent behaviour
More Dysphemistic
military incompetence
physician-assisted suicide
the elderly
undeclared war
global warming
civilian bombings
kidnap
imprisonment without trial
ministry of war
hypocrisy
Euphemism and dysphemism offer us a range of more or less offensive names. But things we truly value are often binaries. These should not be confused with euphemism and dysphemism.
Ideologically Opposed Names
faith
traitor
terrorist
immigrant
I have right to choose.
credulity
whistle-blower
freedom fighter
expatriate
You're a baby killer.
© 2015 Danyal Freeman