What is Crisis

The term crisis can be defined in numerous ways depending on the context that one is referring too. However, it is apparent that the term crisis has been used widely to display the state of uncertainty that is more likely to cause perils to nations in different spheres of life. With reference to the work of Laxer (2006) and Fulcher (2004), the element of crises as it affect the human society have been clearly identified.  From the work of Fulcher (2004), it can be noted that the author faults the system of capitalism mentioning that it is associated with crises that have continued to engulf the world in many spheres.  On the same note Laxer (2004) advances the nation that the growths of empire in many ways contribute to instability which to us is another form of crisis.  Just in mentioning, Fulcher (2004) believes without doubt that the most of the crisis that the world is facing are but by-products of the capitalist system


As believed by Fulcher (2004), the system of capitalist has been characterized by numerous crises which have been experienced in different parts and times. Beginning at the South Eastern Banking crisis, this affected Banking institutions in the regions since most of them had not prepared themselves for such eventualities. During this crisis, most of the Nations like South Korea had their currency fall in value forcing them to experience increasing stock prices. In this period, asset of Thai and Indonesia fell in value drastically.

Speaking again on crises again, Fulcher (2004) agrees that the fall of the Russian economy represented another crisis which affected the Russian economy.  Once regarded as a robust economy, the Russian economy fell down joining to the list of countries that have experienced economic failures of greater magnitude in the world. With this came some devastating effects to people who were living below the poverty line.

With the growing use of machine in the wake of industrials revolution, there arose a crisis where products where produced much more quickly but a sold at low cost since most of them were produced in large qualities (Fulcher 2004). The same scenario was repeated during the 1990 when there was an overproduction crisis in the banana industry. Those who had vast areas of banana farms where able to overproduce bananas to the extent that the market could not absorb the surplus thus leading to a lot of losses. This crisis had another type of crisis on the list of crisis that Fulcher (2004) associated with the capitalism.

The political systems have not been spared either from being affected by crisis which has continued to rock the world. As posited by Laxer (2006), empire comes into being when other nation exercises the power or authority over other nations or societies. However, in such processes, crisis of political nature often occur. Just to draw a little illustration, it was Germans desire to extend it domination that caused the second world war which aggravated the then political relationship between nations as can be depicted with the formation of allies who were rallied after capitalistic or socialist ideologies. This created a crisis that shook the world with the onset of the arms race between American and Russia.

While questioning whether capitalism will still stand amidst the many crises, Fulcher (2004) maintain that the greed for money and the desire to lure more people made most of the financial institutions suffer huge losses. While the value kept rising both in the United States and Europe, many of the people as well as the banks conceived that housing had become one of the areas where investments could be placed on. With more loans being offered, banks even gave loans beyond the value of houses hoping that by doing so, most them will have substantial payback from the. However, this failed prompting the collapse of many loaning institutions with the level of debt of the institutions appearing to be high since most of them had borrowed money for their use more than amount of the initial capital invested in their business.

As argued by Laxer (2006), sometimes nations with imperialistic tendencies tend to gain more benefit and resource more than other nations making others to suffer. A typical example for this case could be move by American which can be considered as imperialist towards exerting the influence to other countries like Iraq. In such instance, the prevalence of an imperialist make the other nations experience social crises with people being deprived of basis services in their own countries. On the same note, Laxer (2006) question whether the participation of the Americans in global welfare in areas such as Iraq brings with itself stability of a destabilization effect.  Though this is not answered by him, it can be realized that nations like Iraq have had its member turn against one another which clearly depicts a social crises. 

The occurrence of the great economic depression can be represented as a form of historical crises that affected numerous people in the world. While it affects were reduced after time, there are many people who suffered having difficulties to acquire funds for their use. Several wars like the world war can be attributed to the development of historical crises that have continued to characterize human history 


The works of both Laxer (2006) and Fultcher (2004) bring to our attention the extent to which the human society has undergone several form of crises which have affected many areas such as social, economic, political and  historical domains of man. As the two authors explore crises, it become clear that the imperialist nature of countries like American as well capitalism has been faulted for the increasing number of crises that have continued to face the human society.