Mental Health & The Economy

 

We all know that COVID-19 has significantly affected both the domestic and global economies through widespread contagion, the closure of businesses, job losses, scaled-back operations and lost revenues. Also, whenever a new variant is identified, the investment markets tend to react negatively.¹ Therefore, it’s easy to connect the dots between the physical health of the nation’s population and the health of the economy.

 

But what about mental health? In recent years, there has been a much greater focus on the breadth and depth of mental illness in America, including anxiety, depression, burnout and substance abuse. The pandemic has exacerbated these issues as people suffer from fear of job instability, isolation and worry about their physical health.²

 

On top of that, we are experiencing what economists are referring to as “The Great Resignation.” New insights and observations reveal that people aren’t just tired of their jobs due to poor wages, but they also suffer from long-term mental fatigue related to working a job that provides no joy and adds stress.³

 

Insurance companies previously classified mental illness as a pre-existing condition and would charge higher premiums or even deny health coverage for a patient with such a diagnosis. However, the Patient Protection and Affordable Care Act (ACA) of 2010 was the first substantial legislation that recognized mental illness as a physical ailment and mandated that health insurance companies cover it under their policies. Millions of Americans have benefitted from the diagnosis and treatment of conditions that have traditionally been treated as taboo. Through therapy, medication, behavior and lifestyle modifications, many Americans are able to recover or manage their mental health, which improves their quality of life and engagement in jobs and allows them to contribute to a stronger economy.⁴

 

Worry is a big contributor to mental health issues, and we know that people spend a lot of time worrying about their finances. What if this happens, or what if that happens? A good way to provide some sense of relief is to be properly insured against large financial losses. We can help you prepare for retirement by setting up an insurance-backed source for a stream of income. Please give us a call if you’d like to learn more.

 

Unfortunately, the pandemic changed the working landscape and thus uncovered many of the ongoing flaws in both the health care industry and labor force that either contribute to or at least fail to mitigate factors that contribute to mental illness. This, in turn, continues to hurt the health of our economy as much as our personal health. For example, since the beginning of the pandemic, 60% to 75% of health care workers have reported symptoms of exhaustion, depression, sleep disorders and PTSD. One in five have quit their jobs. Even before COVID-19, burnout cost the U.S. health care system about $4.6 billion a year.⁵

 

A recent survey by The Economist Intelligence Unit revealed that company executives view fatigue, burnout and stress as the top barriers to business growth. It also found that eight in 10 workers feel emotionally drained by their jobs. As for coping with the added stress of the pandemic, today’s workers are having to deal with isolation, disconnection and the blurred line between work and home life.⁶

 

Content prepared by Kara Stefan Communications.

 

¹ Reuters. Nov. 26, 2021. “What investors are saying about the new virus variant.” https://www.reuters.com/markets/europe/what-investors-are-saying-about-new-virus-variant-2021-11-26/. Accessed Dec. 6, 2021.

² Marius Brülhart, Valentin Klotzbücher, Rafael Lalive and Stephanie K. Reich. Nature. Nov. 17, 2021. “Mental health concerns during the COVID-19 pandemic as revealed by helpline calls.” https://www.nature.com/articles/s41586-021-04099-6. Accessed Dec. 6, 2021.

³ Yasmin Gagne. FastCompany. Dec. 6, 2021. “Prince Harry says quitting can be good for your mental health.” https://www.fastcompany.com/90702784/prince-harry-says-quitting-can-be-good-for-your-mental-health. Accessed Dec. 6, 2021.

⁴ Steve Pitman. Cal Matters. Aug. 26, 2021. “Pandemic brings extra need for mental health care resources.” https://calmatters.org/commentary/2021/08/pandemic-brings-extra-need-for-mental-health-care-resources/. Accessed Dec. 6, 2021.

⁵ David Levine. U.S. News & World Report. Nov. 15, 2021. “U.S. Faces Crisis of Burned-Out Health Care Workers.” https://www.usnews.com/news/health-news/articles/2021-11-15/us-faces-crisis-of-burned-out-health-care-workers. Accessed Dec. 6, 2021.

⁶ Charlotte Business Journal. Dec. 6, 2021. “Workforce health: A business imperative to achieve economic prosperity.” https://www.bizjournals.com/charlotte/news/2021/12/06/workforce-health-a-business-imperative-to-achieve.html. Accessed Dec. 6, 2021.

 

 

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.

 

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions.

 

Investment Advisory Services are offered by Imber Financial Group, LLC., a Registered Investment Adviser firm. Insurance services are offered through Imber Wealth Advisors, Inc. Imber Financial Group, LLC. and Imber Wealth Advisors, Inc. are affiliated companies