The Impact of the Prolonged Economic Downturns, Essay Example

The Impact of the Prolonged Economic Downturns & Economic Crises On the Nursing Profession

The economy in both the United States and the world has been in crisis since 2008. Countries such as Greece and Spain have had the worst unemployment rate compared to the rest of the European Union. The article states that there is a direct correlation between high unemployment rates and the health status of citizens. The World Health Organization (WHO) declared that a great human crisis is occurring as a result of the financial crisis. Studies show that counties with higher economic downturns have a higher rate of homeless, alcoholism, substance abuse, domestic violence, suicide attempts, and malnutrition are prevalent among impoverished nations. On the other hand, some economists argue that improvements in health are link to recessions, especially in instances in which the economy is experiencing a short economic downturn. The impact of the nursing profession depends on the severity and the length of time the country takes to recover from an economic downturn.

Another key element of the article is the understanding that government health care spending decreases during economic declines. “In return for financial bailouts, Greece agreed public spending on health should not exceed 6% of gross domestic product”. The Greeks also decrease the amount of doctors and staff in the overall health care system due to the need to reduce public spending. In addition, they reduced the amount of hospitals from 216 to 83 by merging them or closing the facilities. This effectively reduces the amount of medical facilities and professionals available to cater to the health needs of individuals in the country.

The third key element of the article is the negative impact that an economic depression has on the nursing profession. Nurse’s benefits, working conditions, and labor market participation are undesirably impacted during times of economic crises due to reduced spending and costs. Nurses in the public and private sectors have experienced the number of vacation days, sick leave, insurance benefits, and continuing education benefits that they are entitled to. “During economic downturns, lack of funds may affect the availability and quality of drugs, medical supply, and equipment”.  Medical supplies may be sourced from cheaper companies overseas, possibly with risk to quality. When expensive medical equipment breaks down, it may not be replaced in a timely manner because of lack of funds.

The economic principle applicable to this article is that the authors claim that in the midst of economic downturns, there may be temporary reduction in demand for nurses in addition to a temporary increase in the supply of nurse available for work. After the recession is over, the result would be supply and demand imbalance, resulting in a severe shortage of nurses. The long-term effects could include downsized nurse’s workforce, decrease supply of nurses, and workforce casualization. This means that the demand of nurses is currently at its peak; however, the supply of nurses is low due to the economy decline, causing a supply and demand disproportion. The law of supply and demand defines the effect that the ability of the particular product and the desire for that product has on its price. In other words, since the demand for nurses is high and the market have fewer nurses the nurse’s salary will increase.

In conclusion, the economic recession or general state of the economy has the potential to impact the nursing practice as a whole. When the economy declines, there is less money available in terms of both government and private funding to support health care institutions. As a consequence, there is a high demand for access to health care, but not enough staffed employees available to meet this need. Furthermore, during these times, the personal income of nurses is impacted because jobs are more competitive and less people are being hired. Thus, they work for lower wages and reduced benefits. This effects are reversed during times of economic strength because the demand for health care professionals is high and can be financed as well. Overall, it is important to consider not just the aspects of supply in demand with regards to nursing practice during economic recession, it is also important to consider the finances that are needed to support these positions. By gaining this understanding, we can take action prior to economic recession to ensure that nurses are able to provide health care services in spite of the finances available in the system.