The Good Recession

Have you made any lifestyle changes in the past year? Chances are that when gas reached $4 per gallon you cut back on driving, maybe combined trips or thought twice about jumping in the car and running down to the convenience store. The current recession may have caused you to cut back on unnecessary expenditures or you may be choosing smaller portions at the restaurant.

When I read recently that the recession may actually be good for Americans it caught my attention. Statistics show that recessions have many positive benefits.

For example during a recession families actually eat together more often. That means less junk food at fast food restaurants and more balanced and nutritious meals at home. According to the U.S. Health and Human Services Department, family meals improve communication thus diminishing eating disorders and substance abuse among teens. There is even a reduction in teen suicide.

Meanwhile, some surprising things happen. Economic activity slows, and so do factories, lowering air pollution, a benefit to all our lungs. When people work less, they drive less, so accidents drop. People opt to ride their bicycles or walk more. They work in the garden which increases flexibility, lowers stress and reduces heart disease. It also means healthier foods.

Families reconnect during recessions. People visit their parents and grandparents more often. And since we’re watching expenses, we eat and drink less meaning the consumption of alcohol drops considerably. “It’s a complete myth that people drink more during recessions. In fact, just the opposite is true,” said David Ozgo, the Distilled Spirits Council’s chief economist.

The effect is already measurable. Nine percent of U.S. consumers have cut down on smoking and 14 percent have cut down on drinking alcohol or bought cheaper brands, according to a February Nielsen Company report.

If that isn’t enough the death rate goes down. "When times are bad, mortality rates fall, and most measures of physical health improve," says Christopher Ruhm, an economics professor at the University of North Carolina at Greensboro.

It’s true that people don’t see the doctor as often but that may not be all bad either. Historically every time doctors go on strike the death rate goes down.

Ruhm has documented changes in death rates in several countries. During an economic downturn, when unemployment rises by 1 percent, deaths drop measurably from liver problems, flu and heart attacks, he said.

Put the exercise together with dropping high-calorie meals out, and obesity rates drop. So yes, people may be miserable, Ruhm said, but at least they're skinny and sober.

In fact, Ruhm says that when the economy gets better and unemployment goes down, deaths from heart disease go up. He suggests it's because working longer hours makes it harder for people to eat right, exercise and get enough sleep.

He's got it down to a formula: a 1 percent drop in unemployment equals a 0.75 percent rise in heart attack deaths. That means about 3,900 more people die a year.

What about the business sector. Well there’s good news there too. Contrary to conventional wisdom, the best time to start a new business is during a recession. The reasons are fairly simple. People are out of work so labor is cheap. So is rent. It’s much easier to find a desirable place to open a business at an affordable price. Competition is scarce and goods and services can be purchased at bargain prices. Microsoft, Disney and Hewlett Packard all got their start during an economic downturn as did 30 of the businesses that comprise the Dow Jones average.

If all this is too much good news, don’t despair. One day the economy may recover and we can go back to a decadent lifestyle.

Until next time,