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Psychiatrists MUST have a doctorate. Psychologists (counselors) can have a Masters only. It's possible for a psuchologist to have only a Bachelors degree, though they can't practice any form of counseling without the supervision of a professional.
What makes psychiatrists different than psychologists is that psychiatrists can prescribe drugs (something that is abused 80% of the time, IMO... people want meds, they don't want to work to fix their problems) I believe they also have to go through a number of years of psychotherapy themselves (stupid Freudian sit on the couch and tell me about your mother crap...)
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