A survey done by the CDC during the Covid-19 recession shows that 40 percent of Americans are now grappling with at least one mental health or drug-related problem. Recessions are periods of time when economic activity declines, as well as the mental health of the general population, particularly among those who have lost their jobs. Unemployment rates rise during recessions, GDP drops, the spending habits of individuals change, and fiscal or monetary policies are enacted by the government. The Great Recession, one of the most severe recessions, is described by Gordon Scott, the reviewer of the article ‘The Great Recession’, as the economic downturn from 2007 to 2009 after the global financial crisis. The most recent recession, the Covid-19 recession, has repercussions similar to, or even more severe than the Great Recession, although with different causes. According to The Washington Post, “A federal emergency hotline for people in emotional distress registered a more than 1,000 percent increase in April compared with the same time last year”. The economic downturn in the economy is the biggest factor that contributes to the rise of mental health problems in a recession.
During the Great Recession, there was a global rise in mental health problems due to financial distress. Researchers concluded in a study conducted by BMC Public Health: “In the USA, a cohort study, indicated an increased incidence of anxiety and mood disorders, and substance use disorders were strongly associated with drops in household incomes”. Employed citizens lose a massive amount of income when they become unemployed. As a result, fear and stress can set in as they feel as if they can’t pay mortgages, pay off debts, or other bills. Consequently, individuals who are late on their payments will have their credit impaired, endangering their credibility when they want to take out loans or rent out housing in the future. In the same report by BMC Public Health, researchers concluded that “...recession periods are feasibly associated with the increased prevalence of psychological distress and common mental disorders, substance disorders, and ultimately suicidal behavior”. Some individuals will resort to substance use when they are stressed such as alcohol, marijuana, or smoking, which is further exacerbated by a significant recession. The abuse of these substances can be detrimental to an individual’s health. Abusers will start to feel dependent on alcohol or smoking in times of stress, which can lead to long-term health problems such as lung cancer, liver damage, and cardiovascular diseases. In addition, stress from financial instability can seep into an individual’s family, affecting the mental health of children. According to BMC Public Health, “...children with unemployed parents have a higher prevalence of depression, higher rates of psychosomatic symptoms, and lower perceptions of psychological well-being.” In many cases, the stress from a parent is projected onto the child. Children who have previously been abused by individuals who lose their job are more likely to face mental health problems.
Save your time!
We can take care of your essay
- Proper editing and formatting
- Free revision, title page, and bibliography
- Flexible prices and money-back guarantee
Likewise, in another major recession, the Covid-19 recession, the detrimental effects are also seen. In fact, “The Covid-19 outbreak and the economic downturn it engendered swelled the ranks of unemployed Americans by more than 14 million, from 6.2 million in February to 20.5 million in May 2020”, according to Rakesh Kochhar of the Pew Research Center. The rise of unemployed workers during the Covid-19 recession increased by more than 1.5 times compared to the Great Recession. Gross domestic product has also dropped significantly: “GDP – shrank at an annual rate of 32.9% in the second quarter as restaurants and retailers closed their doors in a desperate effort to slow the spread of the virus” (Horsely). In addition, because of statewide restrictions that shut down non-essential businesses, businesses, mainly small businesses, have had to close. If they are not open, business owners are not able to pay rent, pay employee salaries, or supply inventory. Kay Osorio, the owner of Awesome Playground in Los Angeles, had to close her business in the latter half of March, the first month, in which businesses decided to close and customers began canceling appointments due to virus concerns. She explains her experience by noting: “At the beginning of March, there were less and less open play customers coming. People had started canceling their birthday parties. And unlike other businesses that have been able to pivot to outdoor-only or remote offerings, we couldn’t come up with another way to deliver our service” (Schnalzer). Kelly Tesfaye and her sister, Maze Tesfaye, are two more small business owners who had to close their restaurant that doubled as a jazz club as a result of the coronavirus. Kelly’s daughter describes this experience as follows: “My mother and aunt are constantly in touch with the musicians. When we see them, we know they are heartbroken about this” (Dvorak). Their family business had been open for more than three decades, but with less than a year of economic turmoil, they had to close business. With the loss of income from the coronavirus, small businesses, such as mom-and-pop stores, have had to close, resulting in heartbreak after many years of work.
As a result, mental health problems of citizens have risen substantially during the Covid-19 recession. Students have switched to remote learning, and haven’t seen their classmates or friends as often, resulting in young adults experiencing anxiety and depression, which the organization attributes partly to social isolation. According to the article “During Pandemic, Growth of U.S Adults with Mental Health Issues Jumps to 53 Percent’ by Linda Searing, “...by late June, 13 percent of adults had started or increased alcohol consumption or drug use to help cope with pandemic-related woes, and 11 percent had seriously considered suicide in the past month – a number that reached 25 percent among those ages 18 to 24”. The unemployed have also faced a decline in mental health. The American Psychology Association states: “Losing a job and being unemployed for a long period of time is a psychological trauma and a financial trauma, and the two are closely intertwined”. Furthermore, the coronavirus has also been the cause of many deaths, amounting to over 241,906 in the United States, as of November 27th, 2020, according to the CDC. The mass amount of deaths means many family members were lost during this time period, further harming one’s health. Individuals are more prone to mental health issues when they are worried about debt, or bills, or when they lose loved ones.
In conclusion, there has been a significant rise in mental health issues during recessions. The economic turmoil faced by both the economy and people contributes to common mental health disorders such as drug use or depression. The increase in unemployment also led to uncertainty in individuals, such as the inability to pay off mortgages, debt, or bills, causing more stress. In addition, many individuals have had to close their small businesses built over decades, which for small business owners and their communities was heartbreaking. Finally, as citizens have transitioned from normal life to the new challenges posed by the Covid-19 recession, there has been a substantial increase in the number of calls received by suicide hotlines. To alleviate the financial burdens and stress that come with recessions, the United States government must enact expansionary fiscal policies or businesses must adapt to the new lifestyle presented with the coronavirus. The United States government must enact expansionary fiscal policies to alleviate the financial burden and stress that comes with recessions, or businesses must adapt to the new lifestyle presented by the coronavirus.
Stuck on your essay?
