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Down Economy May Mean More People Drown Their Sorrows

New research contradicts earlier studies that found an economic downturn means less money for potentially unhealthy behaviors such as excessive drinking; instead, it suggests people drown their financial sorrows in a down economy.

Health economist Dr. Michael T. French from the University of Miami and his collaborators found that heavy drinking and alcohol abuse/dependence significantly increase as macroeconomic conditions deteriorate.

The study discovered that binge drinking increased with a rise in the state-level unemployment rate. Driving while intoxicated and alcohol abuse and dependence also increased for both genders and across ethnic groups.

The study is published in Health Economics.

“The study is timely, technically advanced, and original,” said French, principal investigator of this study. “We are one of the first to show that, even though incomes decline for most people during an economic downtown, they still increase problematic or risky drinking.”

The researchers analyzed data from 2001 to 2005, which is the most recent relative to existing studies. It includes a rich set of measures on alcohol consumption that were not looked at in earlier studies, such as alcohol abuse and dependence.

The article indicates that even individuals who are employed have more binge drinking days and are more likely to drive after having too much to drink during a bad economy.

“The way we explain this is even though employed individuals have a job, they could be affected psychologically (e.g., fear of losing their job) from an economic downturn, leading them to have more drinking days and driving under the influence episodes as the state-level unemployment rate increases,” said French.

Among the study’s other findings:

  • The consequences of the unemployment rate on excessive alcohol consumption was demonstrated for all population subgroups in the study, with African-Americans and those aged between 18 and 24 years displaying the largest binge-drinking effect;
  • The number of children in the household and being married is negatively related to alcohol abuse and dependence;
  • Binge drinking is more common as the educational level and income of individuals increase.

The new study suggests that service providers for alcohol abuse programs should prepare for an increased demand for their services during an economic downturn. Unfortunately, many economists predict the unemployment rate in the United States will remain high for several years.

Source: Health Economics

Down Economy May Mean More People Drown Their Sorrows

David McCracken, MA, MS

APA Reference
McCracken, D. (2018). Down Economy May Mean More People Drown Their Sorrows. Psych Central. Retrieved on December 5, 2020, from
Scientifically Reviewed
Last updated: 8 Aug 2018 (Originally: 14 Oct 2011)
Last reviewed: By a member of our scientific advisory board on 8 Aug 2018
Published on Psych All rights reserved.