Lesson 11: Psychology and the Economy Flashcards
How has psychology helped the economy
Social change - • Understanding social influence has been used to change people’s behaviour and attitudes.
• For example, the US state of Montana had a problem with alcohol-related car crashes among 21-34 year olds. While 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.
Improving memory -he cognitive interview was developed based on psychological research into the way in which memory works.
• It has improved the amount of accurate information collected from eyewitnesses.
• The implication for the economy is that the amount spent on wrongful arrests and wasted police time will be vastly reduced.
Attachment - • 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. • More recent research has questioned Bowlby and has shown the importance of the father role.
• Both parents are equally capable of providing the emotional support necessary for healthy psychological development.
• It is now normal for households to have flexible working arrangements.
• Some mothers who earn more go to work and the father stays at home, other couples share the child care evenly.
• This means that modern parents are better equipped to maximize their income and contribute more effectively to the economy.
Mental health - • The McCrone Report estimated that the direct cost of mental health issues on the economy in England is £22.5 billion a year – that 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).
• 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.
