examples of psych and the economy

• Behavioural principles (e.g., classical and operant conditioning) are used in therapies like systematic desensitisation for phobias. By reducing the prevalence of anxiety disorders, individuals are more likely to remain in employment, boosting productivity and reducing the costs of healthcare and unemployment benefits.​

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• Understanding the brain's role in mental illness has led to the development of treatments like antidepressants (SSRIs). Effective medication reduces time off work due to depression and minimizes the long-term economic burden of mental illness on healthcare systems.
• Bowlby’s and Ainsworth’s work influenced policies such as maternity leave and early childcare support. By promoting secure attachments in early life, children develop into emotionally stable adults who are less likely to rely on social services, reducing societal costs.​

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• Research by Loftus and others on the unreliability of eyewitness testimony has led to improvements in police procedures (e.g., cognitive interviews). This reduces wrongful convictions, saving the economy the costs of legal appeals and unjust imprisonment.