How America’s Mental Health Crisis is Disrupting the US Economy
The United States is struggling to stay afloat amid a mental health crisis of unprecedented scale, with effects that impact millions of people across all demographics. With nearly one in five Americans having diagnosable mental health conditions yearly, disorders from anxiety to substance abuse plague individuals everywhere. These issues extend far beyond personal well-being conflicts; they put a significant burden on the United States economy. Considerable declines in workplace productivity and increasing treatment costs indicate a need for some kind of systematic change. This article delves into the extreme economic consequences of America’s mental health crisis and explores strategies to lessen the societal toll.
Decline in Workplace Productivity
Mental health disorders are a prominent drain on workplace productivity in America. Depression and anxiety alone cause a loss of a whopping 12 billion working days per year, costing the United States $1 trillion yearly in lost productivity. Presenteeism, when employees show up to work but are unable to perform their best due to mental health challenges, only adds to this economic toll. With around 36% of US workers experiencing some kind of mental illness symptoms daily, the effects become prominent in the workplace, with an increase in turnover rates, more frequent days off, teams struggling to meet deadlines, and burnout in employees, all factors that are detrimental to an organization's success.
Mental Health Affects Spending
Professor Boaz Abramson of Columbia Business School identifies an often overlooked socioeconomic detail about mental health: people with mental illness spend less, invest less in the stock market, and choose lower paying jobs. With his research, he finds that if mental illness is entirely eliminated, much more consumption, investment, and labor supply would be stimulated. Therefore, the US economy would grow by 1.7% of GDP, or $282 billion, which, to put into easier context, is the size of a typical recession.
Individuals that struggle with mental health typically earn less due to the reduced income that comes with lessened productivity and presenteeism. This directly limits their spending power and the demand for consumer goods. The Bureau of Labor Statistics’ reports show that the more people there are receiving a steady income, the more people there are to make discretionary spending purchases. Fundamentally, consumer spending sustains the US economy; anything that affects a consumer’s ability to regularly do so will only show negative effects for the future of the country’s economy.
Solutions
To the eyes of employers and policymakers, these statistics should be motivation to increase accessibility, availability, and funding of mental health treatments. Typically within the workplace, barriers to this treatment aren’t where the issue lies, thanks to the Affordable Care Act of 2010. Increasing the capacity of mental health treatment centers is what will truly make a difference, as 35 percent of Americans do not have access to a local psychiatrist or psychologist. The expansion of both virtual and community health could generate economic gains equivalent to 1.1% of annual US consumption.
Conclusion
Ultimately, the economic impact of mental health is far-reaching, affecting the workforce, employers, consumers, and the future of the United States economy. With untreated mental health conditions costing the US many billions of dollars annually, systematic change is needed. If we prioritize mental health through targeted funding of necessary initiatives, these costs can be reduced and a more efficient, resilient society can be built–leading to happier, more productive workers in the long run.
Sources:
https://mhanational.org/mentalhealthfacts
https://www.who.int/news-room/fact-sheets/detail/mental-health-at-work
https://executive.berkeley.edu/thought-leadership/blog/impacts-poor-mental-health-business