In a recent article published by the NRC, Robert Dur, Professor of Economics at Erasmus School of Economics, discusses the psychological consequences of losing purchasing power. An oppressive economic situation has a major impact on the mental health of households, Dur said.
As a result of the current energy crisis and high inflation, many Dutch households are suffering from loss of purchasing power. The result is behavioural change. Many households are opting for more economic security, for example, by switching to a permanent contract instead of freelancing, according to the Professor. This financial stress can lead to mental problems, especially among lower-income households. ‘Studies show that there is a link between economic recessions and suicides - especially in countries with a weak social safety net,’ Dur even argues.
The above problem is particularly widespread among young people. The professor says that such financial stress among young people has a lifelong effect. Moreover, he argues that these young people often become a lot more left-wing in terms of income redistribution. ‘People show more compassion for others who have less,’ the Professor concludes.
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You can read the full article from Het NRC, 25 November 2022, here.Â