Posts Tagged ‘ depression ’

The World Turned Upside Down

From Neuroskeptic:

This map is not “upside down”. It looks that way to us; the sense that north is up is a deeply ingrained one. It’s grim up north, Dixie is away down south. Yet this is pure convention. The earth is a sphere in space. It has a north and a south, but no up and down.

There’s a famous experiment involving four guys and a door. An unsuspecting test subject is lured into a conversation with a stranger, actually a psychologist. After a few moments, two people appear carrying a large door, and they walk right between the subject and the experimenter.

Behind the door, the experimenter swaps places with one of the door carriers, who may be quite different in voice and appearance. Most subjects don’t notice the swap. Perception is lazy: whenever it can get away with it, it merely tells us that things are as we expect, rather than actually showing us stuff. We often do not really perceive things at all. Did the subject really see the first guy? The second? Either?

The inverted map makes us actually see the Earth’s geography, rather than just showing us the expected “countries” and “continents”. I was struck by how parochial Europe is – the whole place is little more than a frayed end of the vast Eurasian landmass, no more impressive than the one at the other end, Russia’s Chukotski. Africa dominates the scene: it can no longer be written off as that poor place at the bottom.

One of the most common observations in psychotherapy of people with depression or anxiety is that they hold themselves to impossibly high standards, although they have a perfectly sensible evaluation of everyone else. Their own failures are catastrophic; other people’s are minor setbacks. Other people’s successes are well-deserved triumphs; their own are never good enough, flukes, they don’t count.

The first step in challenging these unhelpful patterns of thought is to simply point out the double-standard: why are you such a perfectionist about yourself, when you’re not when it comes to other people? The idea being to help people to think about themselves in more like healthy way they already think about others. Turn the map of yourself upside down – what do you actually see?

The Third Depression

OP-ED by Paul Krugman in the NYT:

Recessions are common; depressions are rare. As far as I can tell, there were only two eras in economic history that were widely described as “depressions” at the time: the years of deflation and instability that followed the Panic of 1873 and the years of mass unemployment that followed the financial crisis of 1929-31.

Neither the Long Depression of the 19th century nor the Great Depression of the 20th was an era of nonstop decline — on the contrary, both included periods when the economy grew. But these episodes of improvement were never enough to undo the damage from the initial slump, and were followed by relapses.

We are now, I fear, in the early stages of a third depression. It will probably look more like the Long Depression than the much more severe Great Depression. But the cost — to the world economy and, above all, to the millions of lives blighted by the absence of jobs — will nonetheless be immense.

And this third depression will be primarily a failure of policy. Around the world — most recently at last weekend’s deeply discouraging G-20 meeting — governments are obsessing about inflation when the real threat is deflation, preaching the need for belt-tightening when the real problem is inadequate spending.

In 2008 and 2009, it seemed as if we might have learned from history. Unlike their predecessors, who raised interest rates in the face of financial crisis, the current leaders of the Federal Reserve and the European Central Bank slashed rates and moved to support credit markets. Unlike governments of the past, which tried to balance budgets in the face of a plunging economy, today’s governments allowed deficits to rise. And better policies helped the world avoid complete collapse: the recession brought on by the financial crisis arguably ended last summer.

But future historians will tell us that this wasn’t the end of the third depression, just as the business upturn that began in 1933 wasn’t the end of the Great Depression. After all, unemployment — especially long-term unemployment — remains at levels that would have been considered catastrophic not long ago, and shows no sign of coming down rapidly. And both the United States and Europe are well on their way toward Japan-style deflationary traps.

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