Steady growth generates higher levels of wellbeing among citizens than ‘boom and bust’ cycles

What effect do recessions and economic expansions have on the mental wellbeing of citizens? Jan­-Emmanuel De Neve and colleagues present findings from a study of positive and negative fluctuations in business cycles across the world. They write that while growth is significantly associated with increased wellbeing, individuals do not benefit from economic expansions nearly as much as they suffer from recessions. This suggests that steady positive growth that minimises the risk of contraction is the most likely route to improving general wellbeing.