Economic Depression in USA

Introduction Economic depression is defined as the sustained and prolonged down-turn in the economy of a country. Depression is considered more extreme and severe than economic recession. Though depression is considered a form of recession only that depression is characterized by its length, the abnormality of economic factors like rising cases of unemployment, decline in credit availability and also shrinking output and highly volatile monetary value.Advertising We will write a custom report sample on Economic Depression in USA specifically for you for only $16.05 $11/page Learn More Depression is linked to the following two indicators; decline in the Gross Domestic Product by a margin of more than 10% and secondly a recession period exceeding 2 years. According to Foldvary, recession is derived from the word recede that implies falling back and it lasts for a very short time and depression is understood based on the degree of output fall and the extend of the down-turn (Foldvary 3). An economic depression happens when there is fall in output below the long-run trend. The Depression of 1873-1879 This depression was as a result of the bankruptcy of the railroad investment firm of Jay Cooke and company and particularly the restrictive monetary policy of the federal government; this is whereby the gold standard increment could not maintain the pressure for money demands that could enhance the growth of the economy. Deflation is also a factor that led to this depression (Watkins and Allay 1) The Depression of 1893-1898 This was considered to be the worst form of depression ever witnessed in the US before the 1930. It first emanated from the agricultural crises that affected the southern cotton belt and the Great Plains in 1880s and it later hit the Wall Street and the urban areas in 1893. This from of depression led to a massive unemployment which is still considered the highest in the US history at 20-25%, the depression resulted in widespread poverty among the Americans of various income levels. The magnitude of the depression was so acute that by 12896, it was made a popular subject of political campaigns (Edwards 1) The Great Depression of 1929-1933 The United States of America experienced the worst, the longest and the most severe economic depression in the year 1929. This depression led to an acute decline in output, extreme unemployment and drastic deflation in the USA and it has been ranked the second calamity to the civil war.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More This depression was largely associated to several factors like the reduced consumer demand, great financial panic and misplaced government spending that forced a fall in economic output. This depression led to the reduction in industrial production by 47% and the subsequent reduction of the Gross Domestic product (GDP) by 30%, it also resul ted in the decline in the wholesale price index or otherwise referred as deflation by 33%; also the unemployment rate reached 20% which was considered the highest point at that time (Romer 1). This depression is just considered severe when compared to the next depression to hit America in the year 1981-82 that resulted in the decline of GDP by 2%. The USA recovery from this depression began in 1933 when the GDP began to improve at 95 per annum (Romer 3). The 1930 depression saw the increased level of unemployment characterized by a lot of labor force but no work to do and the worst part of depression was in 1933 when the unemployment rate fall below 10%. Recession appeared twice during the great depression, in the august of 1929 and March of 1933 between as indicated by the following graph; Concerning unemployment, the high rate of unemployment is demonstrated by the following graph; Advertising We will write a custom report sample on Economic Depression in USA specifically fo r you for only $16.05 $11/page Learn More Another main indicator of the great depression is the GDP which was greatly affected as seen in the following graph; During the great depression, the most hit sector was the banking sector. The following table is an indication of how banks were affected including the number of suspended banks and also indicates the decrease in the number of banks as a result of merger, failure or collapse and voluntary liquidation. Number of banks and bank suspension Year Number as of 12-31 Suspensions 1929 24,633 659 1930 22,773 1350 1931 19970 2293 1932 18,397 1453 1933 15,015 4000 1934 16,096 57 Causes of the Great Depression The most critical cause of the great depression in the USA was the reduction in spending or otherwise referred as the reduced aggregate demand; this resulted in decline in production since manufacturer noticed an anticipated rise in inventories. This was reflected in other countries due to the factor of gold standard. Other factors that necessitated the great depression are: The stock market crash: the great depression is associated with the tight US monetary policy that targeted the limitation of stock market speculation; this was due to the mild recession that had been witnessed between 1924 and 1927 that had witnessed the massive rise in the stock prices in 1920 and reached the optimum in 1929 and as an immediate measure, the federal reserve had raised the interest rates in order to stop this spiraling stock prices and this largely affected the construction and the auto mobile industries. The fall in the stock prices in 1929 to extend that could not be justified by the anticipation rate resulted to the loss of investor confidence and subsequent bubble burst in the stock market.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More This led to the panic selling on black ‘Thursday’ on October 24, 1929. The previous rise on stock prices had triggered a massive purchase of stock by the investors using loans and hence this price decline forced some investors to liquidate their holdings thus worsening the fall in prices. This crash in the stock market led to the considerable reduction in the consumer aggregate demand especially in the area of durable goods and investments and great fall in output. Banking panic and monetary contraction: this was experienced in the year 1930; banking panic occurs when â€Å"many depositors lose confidence in the solvency of banks and simultaneously demand their deposits be paid to them in cash† (Romer 8); this can lead to those banks that hold deposits as cash reserves to liquidate loans so that they be in position to pay the cash demands. This process of immediate liquidation can force any solvent bank to collapse. This continued till 1933 when President Frankli n Roosevelt proclaimed the ‘bank holiday’ in 1933 that involved the closing of all banks and could only re-open upon being considered solvent by the government inspectors. Economists largely associate this bank panic to the â€Å"increased farm debt in 1920† (Romer 8) and government policy that encouraged â€Å"small and undiversified banks† (Romer 8). The gold standard: economists largely associate the 1929-1933 great depression to the Federal Reserve; they accused the federal reserve of causing a big decline in the American money as a measure to preserve the gold standard. The gold standard implied that each country should fix the value of its currency based on the standard of gold. International lending and trade: the USA had expanded its foreign lending to Germany and the Latin America, this declined in the 1928 and 1929 due to the high interest rates and the flourishing stock market; â€Å"this reduction in foreign lending resulted in credit contract ion and the reduction in the output of borrower countries† (Romer 8). Economic impact of the Great War: when the first broke, no one expected that it would be of the magnitude witnessed; no one predicted the length of the war, the economic expenses of the war and the degree of destruction. The war caused a lot of infrastructural destruction, loss of lives and monetary value in the countries of Europe; this on the other hand precipitated a period of economic boom in the countries of Canada, USA and Latin America since the countries of Europe exhausted their gold reserves to borrow money, other countries also printed extra money. This war interrupted with patterns of domestic and international trade which preceded the economic depression. Sources of Recovery The two main ways of curbing the inflation were indentified as the currency devaluation and monetary expansion. Devaluation â€Å"allowed countries to expand their money supplies without concern about gold movements and exc hange rates† (Romer 8). Another way of curbing the crises was through the imposition of protectionism measure; this led to the launch of various tariffs, the 1988 US presidential seat was won through protectionist ticket. Economic Impact of Depression The depression influenced the US economy in a great way; some of them include the following: Human suffering: for the very short time of the depression, there was drastic increase in the output and the standard of living also a substantial fraction of the labor force could not find employment. Change on world economy: the great depression brought to the end the international gold standard era. Increased government involvement in the economy: after the depression, there was an increased government participation in the economy particularly in the financial market; evidence was the establishment of the Securities and Exchange Commission by the USA. Development of macro-economic policies: most of these policies were aimed at curbing the downturns and the upturns. Conclusion Depression is considered one of the worst macroeconomic aspects that can befall a country; the effects of economy are so devastating since its impact can be felt across the world. The US have experienced a lot five depressions of different magnitude and that has equipped it with experience on the various macroeconomic issues that are required to tame any further depression. The US has on the recent past experienced only recessions which are considered mild form of depression. It is worth mentioning that from the five economic depressions to have hit the US, all the possible remedies have been tried and applied, despite all the efforts it is not clear whether the business cycle that lead to depressions has been removed. Depression an also be considered a natural economic aspect that can be beyond government intervention. This is exemplified by the economic depression of 1907 and 1920 which was eliminated within a year without the government i ntervening. Works Cited Edwards, Rebecca. The depression of 1893. Projects, 2000. Web. Foldvary, Fred. The Depression of 2008 2nd edition. The Gutenberg Press, 2008. Web. Romer, Christina. Encyclopedia Britannica. Berkeley, 2003. Web. Watkins, Thayer and Allay, Tornado. The depression of 1873-1879. University of San Jose State, 2011. Web. This report on Economic Depression in USA was written and submitted by user Cadence Short to help you with your own studies. 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Culture Specific Syndrome Essays

Culture Specific Syndrome Essays Culture Specific Syndrome Paper Culture Specific Syndrome Paper ultural Bound Syndromes Culture-bound syndrome The term culture-bound syndrome was included in the fourth version of the Diagnostic and Statistical Manual of Mental Disorders (American Psychiatric Association, 2000) which also includes a list of the most common culture-bound conditions (DSM-IV: Appendix I). Included in DSM-IV-TR (4th. ed) the term cultural-bound syndrome denotes recurrent, locality-specific patterns of abnormal behavior and troubling experience that may or may not be linked to a particular DSM-IV-TR diagnostic category. Many of these patterns are naturally considered to be illnesses, or at least afflictions, and most have local names. Although presentations conforming to the major DSM-IV-TR categories can be found throughout the world, the particular symptoms, course, and social response are very often influenced by local cultural factors. In contrast, cultural-bound syndromes are generally limited to specific societies or culture areas and are localized, folk, diagnostic categories that frame coherent meanings for certain repetitive, patterned, and troubling sets of experiences and observations. In medicine, a culture-specific syndrome or culture-bound syndrome is a combination of psychiatric and somatic symptoms that are considered to be a recognizable disease only within a specific society or culture. There are no objective biochemical or structural alterations of body organs or functions, and the disease is not recognized in other cultures. While a substantial portion of mental disorders, in the way they are manifested and experienced, are at least partially conditioned by the culture in which they are found, some disorders are more culture-specific than others. The concept of culture-bound syndromes is very controversial and many psychologists, medical doctors, and anthropologists reject the concept. The identification of culture-specific syndromes: A culture-specific syndrome is characterized by: categorization as a disease in the culture (i. e. , not a voluntary behavior or false claim); widespread familiarity in the culture; complete lack of familiarity of the condition to people in other cultures; no objectively demonstrable biochemical or tissue abnormalities (symptoms); the condition is usually recognized and treated by the folk medicine of the culture. Some culture-specific syndromes involve somatic symptoms (pain or disturbed function of a body part), while others are purely behavioral. Some culture-bound syndromes appear with similar features in several cultures, but with locally-specific traits, such as penis panics. A culture-specific syndrome is not the same as a geographically localized disease with specific, identifiable, causal tissue abnormalities, such as kuru or sleeping sickness, or genetic conditions limited to certain populations. It is possible that a condition originally assumed to be a culture-bound behavioral syndrome is found to have a biological cause; from a medical perspective it would then be redefined into another nosological category. Western medical perspectives: An interesting aspect of culture-specific syndromes is the extent to which they are â€Å"real†. Characterizing them as â€Å"imaginary† is as inaccurate as characterizing them as â€Å"malingering†, but there is no clear way to understand them from a Western scientific perspective. Culture-specific syndromes shed light on how our mind decides that symptoms are connected and how a society defines a known â€Å"disease†. In contrast, culture-bound syndromes are generally limited to specific societies or culture areas and are localized, folk, diagnostic [comma sic] categories that frame coherent meanings for certain repetitive, patterned, and troubling sets of experiences and observations. Medical care of the condition is challenging and illustrates a truly fundamental but rarely discussed aspect of the physician-patient relationship: the need to negotiate a diagnosis that fits the way of looking at the body and its diseases of both parties. The physician may do any of the following: Share the way the patient sees the disorder, and offer the folk medicine treatment, recognize it as a culture-bound syndrome, but pretend to share the patient’s perspectives and offer the folk medicine reatment or a new improvised treatment, recognize it as a culture-bound syndrome but try to educate the patient into seeing the condition as the physician sees it. The problem with the first choice is that physicians who pride themselves on their knowledge of disease like to think they know the difference between culture-specific disorders and â€Å"organic† diseases. While the second choice may be the quickest and most comfortable choice, the physician must deliberately deceiv e the patient. Currently in Western culture this is considered one of the most unethical things a physician can do, whereas in other times and cultures deception with benevolent intent has been an accepted tool of treatment. The third choice is the most difficult and time-consuming to do without leaving the patient disappointed, insulted, or lacking confidence in the physician, and may leave both physician and patient haunted by doubts (â€Å"Maybe the condition is real. † or â€Å"Maybe this doctor doesn’t know what s/he is talking about. †). Root-work/Obeah: DSM IV-TR (2000), states that a set of cultural interpretations that ascribe illness to hexing, witchcraft, sorcery, or the evil influence of another person. Symptoms may include generalized anxiety and gastrointestinal complaints (e. g. , nausea, vomiting, and diarrhea), weakness, dizziness, the fear of being poisoned, and sometimes fear of being killed (voodoo death). DSM IV-TR site roots, spells, or hexes can be put or placed on other persons, causing a variety of emotional and psychological problems. The hexed person may even fear death until the root has been taken off, or eliminated usually through the work of the root doctor (a healer in this tradition), who can also be called on to bewitch an enemy. Roots is found in the southern United States among both African-American and European American populations and in the Caribbean societies. Obeah (sometimes spelled Obi) is a term used in the West Indies to refer to folk magic, sorcery, and religious practices derived from Central African and West African origins. Obeah can either be a form of dark magic or good magic. As such, Obeah is similar to Palo, Voodoo, Santeria, root-work, and hoodoo. Obeah (another name used in the Caribbean society) is practiced in Suriname, Jamaica, Haiti, the Virgin Islands, Trinidad and Tobago, Guyana, and Belize, the Bahamas, St. Vincent and the Grenadines, Barbados and many other Caribbean countries. Obeah is associated with both benign and malign magic, charms, luck, and with mysticism in general. In some Caribbean nations Obeah refers to African diasporic folk religions; in other areas, Christians may include elements of Obeah in their religion. Obeah is often associated with the Spiritual Baptist church. Origins: In Jamaica, slaves from different areas of Africa were brought into contact, creating some conflicts between those who practiced varying African religions. Those of West African Ashanti descent, who called their priests Myal men (also spelled Mial men), used the Ashanti term Obi or Obeah meaning sorcery to describe the practices of slaves of Central African descent. Thus those who worked in a Congo form of folk religion were called Obeah men or sorcerers. Obeah also came to mean any physical object, such as a talisman or charm that was used for evil magical purposes. However, despite its fearsome reputation, Obeah, like any other form of folk religion and folk magic, contains many traditions for healing, helping, and bringing about luck in love and money. Elements (key features/symptoms) According to Hughes, Simons Wintrob, 1997 study, knowledge about a culture-bound syndrome, can address the relationship between the culture-bound syndrome and the more familiar psychiatric disorders, such as those in DSM-IV. These researchers call this the comorbidity question on the assumption that studying the culture-bound syndromes patterned relationship to psychiatric diagnoses is a more fruitful approach than attempting prematurely to subsume it into the DSM diagnostic categories. Systematic research has identified strong correlations between culture-bound syndromes and criteria for psychiatric disorder, but there is rarely a one-to-one relationship between culture-bound syndrome and psychiatric disorder. The culture-bound syndromes often coexist with a range of psychiatric disorders, as many psychiatric disorders do with each other. The comorbidity question brings culture-bound syndrome research in line with current approaches in psychiatric research. Differences in the symptomatic, emotional, and contextual aspects of cultural syndromes, in turn, may signal different comorbid relationships with psychiatric diagnosis or even the lack of such a relationship. Opinion The extra ordinary addition of culture-bound syndromes in DSM-IV provides the opportunity for improving the need to study such syndromes and the chance for developing a research to study them. The growing ethnic and cultural diversity of the U. S. population presents a challenge to the mental health field to develop truly cross-cultural approaches to mental health research and services. This addition will give researchers the chance to study the relationship between culture-bound syndromes and psychiatric diagnoses. In my opinion a research program based on key questions is still unanswered, which is understanding culture-bound syndromes within their cultural context and to analyze the relationship between these syndromes and psychiatric disorders. Reference DSM -IV-TR Diagnostic and Statistical Manual of Mental Disorders (2000). Publication manual of the American Psychological Association (4th ed. ). Washington, DC: Author. Hughes CC, Simons RC, Wintrob RM: The Culture-Bound Syndromes and DSM-IV, in DSM-IV Sourcebook, vol 3. Edited by Widiger TA, Frances AJ, Pincus HA, Ross R, First MB, Davis W. Washington, DC, American Psychiatric Association, 1997, pp 991–1000 Retrieved July 29, 2009 from American Journal of Psychiatry.