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The Effects of Recession on Health

The true meaning of a recession may potentially be as confusing in the health world as it is in the world of economics. Studies have found that the worst recession of a generation actually could produce health benefits. Though a recession may provide indirect health benefits in the short run, other studies have found that a worsening economic climate actually can lead to lasting health problems after the downturn has ended.

The National Bureau of Economic Research defines a recession as the period between an economic high and an economic low. Recessions last for more than a few months and result in a decline in employment, gross domestic product, wholesale-retail sales and real income — income after it has been adjusted for inflation.

On a national level, mortality, obesity and heavy smoking decrease during recessions and increase during economic upturns, according to studies led by Christopher J. Ruhm, an economics professor at the University of North Carolina, Greensboro, and published in the Quarterly Journal of Economics and the Journal of Health Economics. A decline in smoking and obesity, in turn, leads to a fall in the mortality rate. The studies also theorized that shorter work days, sometimes culminating in unemployment, provide people with the time for lifestyle investments, such as improving health through diet and exercise.

In an e-mail, Ruhm suggested that these lifestyle investments occur less frequently during economic upturns because “people tend to get busy and pre-occupied and so they put their health on the ‘back burner.’”

The studies also found that during economic downturns, leisure-time physical activity increases, because people have more time to exercise. Ruhm said the current recession is slated to have the same health impacts seen previously — unless the economy worsens.

“The big question is how long this downturn lasts and how deep it is,” he said. “If we enter a very serious ‘depression-like’ downturn, then all bets are off.”

Other studies have shown that a struggling economy can lead to long-term health problems. Certain aspects of economic decline, depending on the duration and severity, accentuate some health concerns.

A study conducted by W. David McCausland, D. Cooper and Ioannis Theodossiou of the Centre for European Labour Market Research at the University of Aberdeen Business School in Aberdeen, Scotland, quantified the correlation between unemployment and good health duration. The study found that job losses, and, to a degree, reduced income negatively impact health during recessions and perpetuate decreased health quality in the future as well, even after the slumping economy picks up.

“Apart from the clear adverse effect of unemployment on physical and psychological health and wellbeing, there are also wider and longer lasting social costs that adversely impact [our] health,” McCausland stated in an e-mail. “For example, during spells of deep unemployment, things like crime and addiction increase. Even after the unemployment falls, criminal behavior and abuse of alcohol and drugs have become ingrained and so the adverse effects of these behaviors on health persist long after their cause has disappeared.”

The duration of a recession has been identified as one of the most important factors in determining how a downturn will affect health trends. While longer lasting recessions have been found to have long-term negative health impacts, some suggest that true depressions — an economic downturn where real GDP decreases by more than 10 percent — relinquish all health benefits.

“With low interest rates, those whose incomes are supplemented by saving — particularly pensioners — become worse off,” McCausland said. “Cutting down on health, food, and on fuel to heat the home may adversely affect this very vulnerable group ... This would tend to widen [economic] inequality. Additionally, those with middle incomes may reduce their provision for pensions, and hence their future wellbeing may be adversely impacted — their income and health status may be worse than it could have been if they had saved more, and this is on top of the increased taxation they will have to pay in the future to pay off the debt burden incurred by the recent VAT cuts, bank bailouts, etc.”

In preparing for a long and severe recession, one of the most effective strategies is to tackle the individual influences of the recession head on, McCausland noted.

“During downturns, consumption falls — people have less to spend and credit is harder to find and so [people] can borrow less,” McCausland said. “This reduces people’s perceived well-being, but also may affect health in other ways — choosing “basic” products rather than “healthy” products in the supermarket for example.”

Still, others believe that short-term income reductions and unemployment from a brief recession may jumpstart health improvement and enable its continuation in place of the possible negative impacts of a longer recession.

“One issue is that short-term reductions in income may lead to some healthier behaviors, such as reductions in drinking and eating out,” Ruhm said.

McCausland, however, remained uncertain about a recession’s positive influence on one’s health.

“I think the jury’s out as to whether there could be a positive effect on health — perhaps by smoking or drinking less — as opposed to drinking the same and cutting back on fruit and vegetables,” McCausland said.

In addition to the physical and nutritional impacts associated with long-term recessions, stress and fear have been found to appear as psychological detriments. Increased levels of personal debt, McCausland said, often increase levels of stress and anxiety, which in turn can lead to increased levels of physical ailments.

“A good example could be mortgages — when people come off favorable fixed rate deals, they often struggle to get a new mortgage on as good a deal as they had previously. Or, if people have shorter working weeks, or lower income levels, they may struggle to repay loans — both mortgages and e.g. credit cards. The consequence of this may be increased anxiety from fear of not being able to repay, or at the worst case, fear of repossession of a home, and this has obvious negative psychological effects on health and well-being.”

To counter these negative impacts, Student Health Nutrition Educator Melanie Brede recommends creating a plan to save while staying healthy. Maintaining psychological health can be accomplished, by “recognizing your limits,” Brede said. “Take on only as many responsibilities as you truly have time for. Also, take care of yourself. Maintain regular exercise, adequate sleep, and healthy eating habits. Connect with others. Seek out supportive friends and family members.”

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