L11 - Psychology & The Economy

Question 1

4 ways the psychology & economy are interlinked

Answer 1

• social change
• improving memory
• attachment
• mental health

Question 2

Social change

Answer 2

• Understanding social influence has been used to change people’s behaviour and attitudes
  E.g. Montana had a problem with alcohol-related car crashes among 21-34 year olds.
• only 20% of people in this age group had driven after drinking, 92% of this age group believed that the majority of their peers did this
• Corrected misperception with adverts stating that most young adults (4 out of 5) don’t drink & drive, alcohol-related car crashes were massively reduced
• campaign worked as it made people aware of the real social norm around drink driving so that they moderated their behaviour to fit with what the majority was doing

Question 3

How has research into conformity been applied?

Answer 3

• Research into conformity was applied to prevent people engaging in a risky behaviour
• Similar campaigns have been used to reduce smoking
• Campaigns have the potential to bring about changes that will have a positive impact on the economy
  E.g. reducing drink driving and smoking would alleviate the burden on emergency and health
  services

Question 4

Improving memory

Answer 4

• The cognitive interview was developed based on psychological research into the way in which memory works
• It’s improved the amount of accurate information collected from eye witnesses
• The implication for the economy is that the amount spent on wrongful arrests and wasted police time will be vastly reduced

Question 5

Attachment

Answer 5

• Attachment research has evolved considerably since Bowlby asserted that a child can only ever form a secure attachment and lasting monotropic bond with its mother
• In Bowlby’s era, childcare was seen to be the sole responsibility of the mother, preventing many women from being able to work
• More recent research has questioned Bowlby & shown the importance of the father role
• Both parents are equally capable of providing the emotional support necessary for healthy psychological development
• normal for households to have flexible working arrangements
• Some mothers who eaten more go to work & fathers stay home, others share childcare
• This means that modern parents are better equipped to maximize their income and contribute more effectively to the economy

Question 6

Estimates of the direct cost of mental health issues on economy in England

Answer 6

• McCrone Report - £22.5 billion a year
• includes spending in health and social care, as well as a variety of other agencies, but not the indirect cost of lost employment
• Absence from work costs the economy £15 billion a year and a third of all absences are caused by mild to moderate mental health disorders, such as depression, anxiety, and stress (Telegraph 2014).

Question 7

Mental health

Answer 7

• Evidence based research on effective drug therapies has been essential in reducing the cost of mental illness to the economy and returning people to work.
• research findings into psychopathology may lead to improvements in psychological health/treatment programmes which may mean that people manage their health better and take less time off work
• would reduce costs to the economy
• Psychological research findings may lead to better ways of managing people who are prone to mental health issues whilst they are at work which could improve their individual productivity, again boosting the economy overall
• ‘Cutting-edge’ scientific research findings into treatments for mental health issues carried out in UK may encourage investment from overseas companies into this country which could boost the economy
• However, providing effective treatments might be a significant financial burden to an NHS service already under huge financial strain.
• Research might discover that new treatments are more effective than older therapies, but these new therapies could be more expensive