Why the Recession is a Blessing in Disguise

Read the whole thing at The London Times Online. But here are some tidbits:

We'll smoke less, be fitter, thinner and greener. Oh, and the roads will be safer. There is a surprising side to a downturn

When times are good, research by Stanford University and the University of North Carolina shows that people of all classes tend not to take care of themselves and their families. The better off may have gym membership but all classes drink too much (especially before driving), they eat more fat-laden food - either pre-packaged from supermarkets or in restaurants - and are more likely to neglect their families. In downturns, people have more time to visit their elderly relatives and are more likely to look after their children themselves rather than booking them into expensive after-school activities or crèches.

Grant Miller, an assistant professor of medicine at Stanford, says that in a boom people work longer, harder hours to take advantage of the conditions and are more stressed and less likely to do things that are good for them: “Cooking at home and exercising are seen as a waste of time.”

But when wages drop, and jobs are scarce, the young feel that it makes more economic sense to prolong their education, and the elderly will retire earlier because there is less incentive to keep earning.

This research backs up a paper, published in 2000, entitled Are Recessions Good for your Health? by Christopher Ruhm, professor of economics at the University of North Carolina. Professor Ruhm analysed death rates from 1972 to 1991, comparing them to economic shifts. He found that for every 1 per cent increase in unemployment rates, there was a 0.5 per cent decline in the death rate.

Friday, October 10, 2008