Monetary And Fiscal Policy
For example, the Fed lowered a key interest rate to nearly zero to promote liquidity;and, in an unprecedented move, provided banks with a staggering $7.7 trillion of emergency loans in a policy known as quantitative easing. This massive monetary policy response in some ways represented a doubling down on the early 2000’s monetary expansion that fueled the housing bubble in the first place.
Along with the inundation of liquidity by the Fed, the U.S. Federal government embarked on a massive program of fiscal policy to try to stimulate the economy in the form of the $787 billion in deficit spending under the American Recovery and Reinvestment Act, according to the Congressional Budget Office. These monetary and fiscal policies had the effect of reducing the immediate losses to major financial institutions and large corporations, but by preventing their liquidation they also keep the economy locked in to much of the same economic and organization structure that contributed to the crisis.
How Do I Know Which Type I Have
If you think you might have any type of depression, its important to follow up with a doctor. All depression types discussed in this article are treatable, though it might take some time to find the right treatment for you.
If youve had a previous bout of depression and think it may be happening again, see your psychiatrist or other mental health professional right away.
If youve never had depression before, start with your primary care physician. Some symptoms of depression can be related to an underlying physical condition that should be addressed.
Try to give your doctor as much information about your symptoms as you can. If possible, mention:
- when you first noticed them
- how theyve affected your daily life
- any other mental health conditions you have
- any information about a history of mental illness in your family
- all prescription and over-the-counter medications you take, including supplements and herbs
It might feel uncomfortable, but try to tell your doctor everything. This will help them give you a more accurate diagnosis and refer you to the right type of mental health professional.
The Great Depression And The Rise Of The Nazis
The Great Depression also played a role in the emergence of Adolf Hitler as a viable political leader in Germany. Deteriorating economic conditions in Germany in the 1930s created an angry, frightened, and financially struggling populace open to more extreme political systems, including fascism and communism.
Hitler had an audience for his antisemitic and anticommunist rhetoric that depicted Jews as causing the Depression. Fear and uncertainty about Germanys future also led many Germans in search of the kind of stability that Hitler offered.
While the Great Depression were not solely responsible for bringing;Hitler to power, they helped create an environment in which he gained support.
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Life And Death During The Great Depression
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The Global Great Depression
The United States was a central part of the international economic system, and its national economic disaster could not be contained. It spread across the globe. It hit particularly hard in Europe where multiple nations were indebted to the United States. During World War I, the Allies had bought a great deal of military weapons and products using loans from the United States. When the United States called for those loans to be repaid to stabilize its own economy, it threw foreign economies into economic depression as well.
In Germany, depression hit in a different but no less powerful way. The new Weimar Republic had weathered a period of intense inflation in the 1920s due to reparations required by the;Versailles Treaty. Rather than tax German citizens to pay the reparations, Germany borrowed millions of dollars from the United States and went further into debt. American demands for loan repayment had disastrous repercussions for an already fragile German economy, with banks failing and unemployment rising. As in the United States, the Weimar Republic decided to cut spending rather than increase it to spur the economy, further worsening the situation.
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Great Depression Of 1837
This depression is acknowledged to be a worse Great Depression than the later Great Depression of the 1930s. This great depression ended in the United States due to the California Gold Rush and its ten-times addition to the United States’ gold reserves. As with most great depressions, it was followed by a thirty-year period of a booming economy in the United States, which is now called the Second Industrial Revolution .
Life Expectancy At Birth And Age
Life expectancy generally increased throughout the period of study . However, it oscillated substantially throughout the 1920s and 1930s with important drops in 1923, 1926, 19281929, and 1936 coinciding with strong economic expansions. During the Great Depression, it rose from 57.1 in 1929 to 63.3 years in 1933. The rates of infant mortality and age-specific mortality for all age groups under 20 years generally declined during the 1920s and 1930s. Superimposed on this general declining trend, peaks in both infant mortality and mortality for children aged 14, 59, 1014, and 1519 were observed in the years 1923, 1926, 19281929, and 19341936. These peaks all coincide with periods of strong economic growth .
Infant mortality rate and mortality rates for age- and sex-specific groups .
Mortality rates of men and women aged 2544 years declined sharply during the recession of 19201921, but were either stagnant or increasing during the rest of the 1920s, reaching peaks either in 1928 or 1929, a year of strong economic growth, in all age strata. In all these demographic groups, mortality declined during the early 1930s, coinciding with the Great Depression, and then rose during the strong economic growth of the mid-1930s.
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Rates In Children And Adolescents
Depression can begin during childhood or during the teenage years. Similar to the prevalence rates in adults, girls are more likely to experience depression than boys. Theres a sharp increase in depression in girls just after puberty.
Although there has been a rise in teenage depression, according to a 2016;American Academy of Pediatrics study, there has not been a corresponding increase in treatment for teenagers.
The American Academy of Pediatrics now recommends regular depression screening for all adolescents 12 and over, given that the symptoms of depression;are often missed by adults such as parents, teachers, and even doctors.
Here are the most recent depression statistics in children and adolescents:
- 3.1 million young people between the ages of 12 and 17 have experienced at least one major depressive episode in the past year in the United States.
- 2% to 3% of children ages 6 to 12 may have serious depression.
- 20% of adolescent girls have experienced a major depressive episode.
- 6.8% of adolescent boys have experienced a major depressive episode.
- 71% of adolescents who experienced a major depressive episode in the past year;experienced a severe impairment.
- 60% of children and adolescents with depression are not getting any type of treatment.
- 19% of children with depression saw a health care professional for treatment.
Premiers Plan And The Labor Split
In 1931 the state and federal governments met to resolve the crisis and formulated the Premiers Plan, a strategy they claimed was based on the principle of Equality of Sacrifice but which called for a massive 20 per cent cut in federal and state spending along with increased taxes.
What was intended as a compromise fragmented the party into three factions. Jack Lang and supporters of the loans default program were expelled and formed Lang Labor. Ted Theodore stayed with Scullin and formed a moderate approach to the crisis. Minister for Public Works Joseph Lyons led a fiscally conservative faction.
Lyons and his supporters resigned from government and joined the Opposition Nationalist Party to form the United Australia Party in May 1931.
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Recovery From The Great Recession
Following these policies the economy gradually recovered. Real GDP bottomed out in the second quarter of 2009 and regained its pre-recession peak in the second quarter of 2011, three and a half years after the initial onset of the official recession. Financial markets recovered as the flood of liquidity washed over Wall Street first and foremost.
The Dow Jones Industrial Average , which had lost over half its value from its August 2007 peak, began to recover in March 2009 and, four years later, in March 2013, broke its 2007 high. For workers and households, the picture was less rosy. Unemployment was at 5% at the end of 2007, reached a high of 10% in October 2009, and did not recover to 5% until 2015, nearly eight years after the beginning of the recession. Real median household income did not surpass its pre-recession level until 2016.
Critics of the policy response and how it shaped the recovery argue that the tidal wave of liquidity and deficit spending did much to prop up politically connected financial institutions and big business at the expense of ordinary people and may have actually delayed the recovery by tying up real economic resources in industries and activities that deserved to fail and see their assets and resources put in the hands of new owners who could use them to create new businesses and jobs.
The Four Paths To A Structural Regime Break
Policy and politics are what stand between a severe crisis and a structural regime break. Persistently inadequate policy responses rooted either in an inability or a political unwillingness are what fail to stop the negative trajectory of a crisis-ridden economy. Weve mapped four paths that lead to a structural regime break, using historical examples to illustrate each.
1. Policy Error
The first path to a depression occurs when politicians and policymakers conceptually struggle to diagnose and remedy the problem. The Great Depression is a classic example it was an epic policy failure, which facilitated not only the depth of the crisis but also its length and legacy. Two conceptual misunderstandings were involved:
The result of these policy mistakes was severe deflation by well over 20%. This meant that while unemployment was at very high levels, the nominal value of many assets fell sharply, while the real burden of most debts rose sharply leaving household and firms struggling to regain their footing.
2. Political Willingness
The second path from a deep crisis to a depression happens when the economic diagnosis is clear, and the remedies are known, but politicians stand in the path of solution. Its a problem of willingness, more than understanding and mindsets.
3. Policy Dependence
4. Policy Rejection
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The Idea Of A Last Depression Troubles Me
And still, I find the idea of the last depression and the suicide troubling.There is still some vague hope that refuses to die that I might actually do something useful with my existence. OK, I admit, its unlikely, like I said, its a vague hope.
There really is no logical reason to stay alive, other than to say, perhaps, there will be plenty of time to be dead later, so theres no point in speed up the process any.
There is a biological trait that all humans have, the desire to stay alive. Self-preservation, and then of course procreation, is the drive of all life. This is a biological necessity, obviously. Suicide is like a 12-car pile-up during the drive.
I mean if I plunked a bunch of life forms on a planet, I would make sure they had a vested interest in staying there too. After all, I did go to all the bother of putting them there in the first place.Yes, Im aware people are built to prolong life, not to end life. Its instinctual.
Suicide is the opposite of this driving force, of our instincts.
Life Expectancy At Birth By Sex And Race
Life expectancy for white and nonwhite males and females shows the same general patterns observed for overall life expectancy . Stable or decreasing life expectancy during the 1920s was followed by increases in life expectancy for white and nonwhite men and women during the Great Depression, a decline in 1936, coinciding with a period of strong economic growth, and increasing life expectancy for the latter part of the 1930s. The patterns are particularly noticeable in nonwhites; nonwhite males lost 8.1 years of life expectancy between 1921 and 1926, and females lost 7.4 years of life expectancy in the same period. In contrast, during the Great Depression nonwhites gained 8 years of longevity, with life expectancy increasing in nonwhite males from 45.7 years in 1929 to 53.8 years in 1933 and from 47.8 to 56.0 in females during the same period.
Life expectancy at birth , for males and females, and whites and nonwhites.
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Great Depression Ends And World War Ii Begins
With Roosevelts decision to support Britain and France in the struggle against Germany and the other Axis Powers, defense manufacturing geared up, producing more and more private sector jobs.
This expanding industrial production, as well as widespread conscription beginning in 1942, reduced the unemployment rate to below its pre-Depression level. The Great Depression had ended at last, and the United States turned its attention to the global conflict of World War II.
What Ended The Great Depression
In 1932, the country elected Franklin D. Roosevelt as president. He promised to create federal government programs to end the Great Depression. Within 100 days, he signed the New Deal into law, creating 42 new agencies throughout its lifetime. They were designed to create jobs, allow unionization, and provide unemployment insurance. Many of these programs still exist. They help safeguard the economy and prevent another depression.;
New Deal programs include Social Security, the Securities and Exchange Commission, and the Federal Deposit Insurance Corporation.
Many argue that World War II, not the New Deal, ended the Depression.;Still, others contend that if FDR had spent as much on the New Deal as he did during the War, it would have ended the Depression. In the nine years between the launch of the New Deal and the attack on Pearl Harbor, FDR increased the debt by $3 billion. In 1942, defense spending added $23 billion to the debt. In 1943, it added another $64 billion.
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Bank Runs And The Hoover Administration
Despite assurances from President Herbert Hoover and other leaders that the crisis would run its course, matters continued to get worse over the next three years. By 1930, 4 million Americans looking for work could not find it; that number had risen to 6 million in 1931.
Meanwhile, the countrys industrial production had dropped by half. Bread lines, soup kitchens and rising numbers of homeless people became more and more common in Americas towns and cities. Farmers couldnt afford to harvest their crops, and were forced to leave them rotting in the fields while people elsewhere starved.;In 1930, severe droughts in the Southern Plains brought high winds and dust from Texas to Nebraska, killing people, livestock and crops. The Dust Bowl inspired a mass migration of people from farmland to cities in search of work.
In the fall of 1930, the first of four waves of banking panics began, as large numbers of investors lost confidence in the solvency of their banks and demanded deposits in cash, forcing banks to liquidate loans in order to supplement their insufficient cash reserves on hand.
Bank runs swept the United States again in the spring and fall of 1931 and the fall of 1932, and by early 1933 thousands of banks had closed their doors.
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The Great Depression In Canada
The Great Depression of the early 1930s was a worldwide social and economic shock. Few countries were affected as severely as Canada. Millions of Canadians were left unemployed, hungry and often homeless. The decade became known as the Dirty Thirties due to a crippling droughtin the Prairies, as well as Canadas dependence on raw material and farm exports. Widespread losses of jobs and savings transformed the country. The Depression triggered the birth of social welfare and the rise of populist political movements. It also led the government to take a more activist role in the economy.
Early Recessions And Crises
Attempts have been made to date recessions in America beginning in 1790. These periods of recession were not identified until the 1920s. To construct the dates, researchers studied business annals during the period and constructed time series of the data. The earliest recessions for which there is the most certainty are those that coincide with major financial crises.
Beginning in 1835, an index of business activity by the Cleveland Trust Company provides data for comparison between recessions. Beginning in 1854, the National Bureau of Economic Research dates recession peaks and troughs to the month. However, a standardized index does not exist for the earliest recessions.
In 1791, Congress chartered the First Bank of the United States to handle the country’s financial needs. The bank had some functions of a modern central bank, although it was responsible for only 20% of the young country’s currency. In 1811 the bank’s charter lapsed, but it was replaced by the Second Bank of the United States, which lasted from 1816 to 1836.
|12~1 year||48~4 years||The United States’ economy declined moderately in 1833â34. News accounts of the time confirm the slowdown. The subsequent expansion was driven by land speculation.|
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