Does Higher Wealth Lead to Poorer Mental Health?

A rising standard of living and economic growth are generally viewed as signs of progress for any society. Better economies bring improved access to healthcare, housing, education, and overall quality of life. But paradoxically, there’s a global trend suggesting that mental health issues are increasing most rapidly in countries with high economic development.

This article does not aim to establish causality — we are not mental health experts. Instead, we wish to raise a question and contribute to a broader conversation: Can wealth sometimes come at the cost of mental well-being?

The Mental Health Paradox of Prosperity

In countries such as the United States, United Kingdom, Denmark, Australia, and South Korea — all nations with high living standards — the incidence of depression, anxiety, stress, and loneliness is growing.

According to the OECD, more than 25% of people in several member states reported symptoms of anxiety or depression by the end of 2020. In nations like Belgium, South Korea, UK, and the US, self-reported depressive symptoms more than doubled during the COVID-19 pandemic.

The United States — the world’s largest economy — has one of the highest rates of mental illness. Around 25% of adults live with a diagnosable mental condition, and more than a third of those with serious illnesses receive no treatment.

In South Korea, despite its remarkable economic transformation, mental health struggles are acute, particularly among young people, with high suicide rates and low treatment-seeking behavior.

Even in Denmark, often ranked among the happiest countries in the world, reports of anxiety, stress, and depression — particularly among youth — are on the rise.

Why Might Prosperity Harm Mental Well-being?

Researchers and mental health professionals suggest several plausible contributing factors:

1. High Expectations and Performance Pressure

Wealth can increase the pressure to achieve success, status, and financial security. When individuals struggle to meet these expectations, it leads to anxiety and chronic stress.

2. Individualism and Social Isolation

Wealthier societies often emphasize individual achievement, weakening traditional social bonds. According to the OECD Better Life Index, time spent with family and friends has declined significantly over the last decade.

3. Social Media and Constant Comparison

Digital platforms intensify the pressure to compare ourselves to curated portrayals of “perfect lives.” This breeds low self-worth and feelings of inadequacy — especially among adolescents and young adults (The Guardian).

Is the Problem Less Severe in Poorer Countries?

Reports of mental illness are lower in low- and middle-income countries. But this doesn’t necessarily mean fewer people suffer. In fact, the World Health Organization (WHO) estimates that 76–85% of people with mental disorders in these countries receive no treatment, compared to 35–50% in high-income nations.

Nevertheless, some countries with moderate wealth — such as Costa Rica and Bhutan — show relatively high levels of subjective well-being. Bhutan even measures Gross National Happiness instead of GDP. In these cultures, social connection, community values, and meaningful living are prioritized, potentially buffering against mental distress.

The Vulnerability and Outcomes Paradoxes

Two well-known phenomena in global mental health studies are worth mentioning:

• Vulnerability Paradox: People in economically strong nations often report more mental distress, despite better living conditions.
• Outcomes Paradox: Patients with severe mental disorders like schizophrenia often experience better long-term outcomes in lower-income countries. One study in Nature highlighted that stronger family support and less social isolation may contribute to this.

In other words, economic prosperity does not guarantee better mental health outcomes — and in some cases, may even hinder recovery.

What Can Be Done?

If societies wish to foster well-being beyond material success, policies and cultural shifts are needed. According to various reports, governments should consider:

• Reinforcing social ties and creating opportunities for connection.
• Reducing stigma around mental health treatment.
• Teaching media literacy to help young people handle online pressures.
• Investing in prevention at schools and workplaces.
• Measuring well-being as seriously as GDP, as Bhutan does with its Gross National Happiness Index.

Not a Conclusion, But a Question

This article does not seek to demonize wealth or economic development. These bring undeniable benefits. But we believe it is worth asking: Why do mental health struggles increase in places where life should be the easiest?

Could it be that in our pursuit of economic success, we’ve overlooked something essential to our well-being?

We hope this article contributes to reflection and invites a richer conversation on what truly makes a society thrive.

Sources and Further Reading

• OECD Health at a Glance 2023 – Mental Health
• OECD Measuring Population Mental Health
• Commonwealth Fund: Comparing US Mental Health with Other Countries
• Mental Health in South Korea – Wikipedia
• The Guardian – Surge in Mental Illness Among Young People
• WHO: Urgent Need to Transform Mental Health Care
• Nature: Mental Health Outcomes in Lower-Income Countries
• OECD Better Life Index – Wikipedia
• Gross National Happiness – Bhutan
• FT: Can Economic Growth Still Make Us Happy?