More prime-age Americans report being in bad health during downturns than during expansions. Although causality may run both ways, we provide evidence that shocks to aggregate demand affect not only economic activity but also health. Health behaviors may contribute to these results, but downturn-induced stress is likely part of the channel that links economic fluctuations to health fluctuations. Together, this suggests that economic downturns have effects beyond the economy as narrowly defined. It also affects population health.
This article appeared in the First Quarter 2025 issue of Economic Insights. Download and read the full issue.
