Economic uncertainty places strain on mental health

This story first appeared in Healthy You - January 2026, The Gazette’s quarterly health publication.

Federal and statewide economic trends touch everyone’s lives, but coping strategies and managing expectations can help overcome stress those trends can create.

The United States continues to face an upheaval of national policies under President Donald Trump, including an overhaul of foreign trade while job growth slows and cost of living increases. Meanwhile, Congress and the president also recently passed a budget reconciliation bill that the Congressional Budget Office estimates will see 7.8 million more people in the country go without medical insurance by 2034, primarily due to Medicaid cuts, alongside losses in Affordable Care Act (ACA) marketplace coverage.

Jennifer Becker, licensed mental health counselor and approved clinical supervisor with Insight Therapy Group PC in Cedar Rapids, said the broad economic challenges that ultimately can introduce stress into households across the country have a “pretty significant” effect on mental health.

“When things get more expensive, it impacts every area of your life,” Becker said. “It impacts your ability to meet all of your basic needs. Because we live in a capitalist society, if you don’t have money, you don’t have much. Lately as the cost of everything seems to go up, it’s crunching people from all sides.”

The type of stress that comes with economic uncertainty or personal financial insecurity has the potential to affect almost every aspect of a person’s life, from their personal relationships to their ability to function or be productive, Becker added.

It is not uncommon to feel a sense of losing control when outside forces, such as decisions made on Capitol Hill, impact a person’s life. Some may compensate for that loss of control by seeking activities that release dopamine, the “feel-good” hormone that acts as a type of reward for the brain.

Eating and shopping are a couple of common ways that people stimulate that reward in the face of stress.

“I can’t control inflation, and I can’t control interest rates,” Becker said. “What I can control is, ‘Wow, it sounds really good to eat two donuts right now even though I know I shouldn’t.’ When things get removed from your control, everything you thought was in your control tends to get shakier.”

In moderation, these types of responses to stress are not inherently harmful, but there are healthier ways to face feelings of uncertainty and lost control. Preparing coping strategies before times of stress can help people get through the economic uncertainty facing so many, Becker said.

“The most important thing is whatever you have identified as a healthy coping strategy for you, regardless of context, you need to practice it when you’re not stressed out,” she said.

There are many forms of healthy coping. Breathing exercises have a calming effect. Meditation, yoga and general exercise, journaling and listening to music are also effective strategies because they reduce blood pressure, slow the heart rate and breath rate, reduce tension and are healthy distractions from whatever is causing stress.

Doing these practices during times of calm ensures they will be more effective when needed in times of high stress.

  Buy Photo

“If you wait until you are in crisis or stressed out, whether that is a panic attack or whether that looks like you’re so overwhelmed or being short with everyone, if you wait until you’re in that moment, it’s probably not going to be effective,” Becker said. “You’ve got to teach yourself how to do it effectively when you’re at a baseline level or at least at a level that is lower than a peak.”

Becker emphasized that a person’s preferred coping strategy is not as important as effectively practicing the strategy.

“Coping strategies aren’t going to ‘fix’ big problems, but I try to help clients understand that they can make things ‘hurt a little bit less,’” Becker said.

When so much feels uncertain or outside of one’s control, staying tuned in can carry a heavy weight. Staying informed about what is happening in the world is important, but striking a balance between being informed and caring for one’s own mental health is the challenge.

“It’s all about setting limitations. Instead of doom scrolling and endlessly going through social media, maybe don’t dive into the comments,” Becker said. “Maybe limit yourself to only paying attention to these current events for 10 minutes a day or five minutes a day, getting the breakdown from a news site versus just scrolling and scrolling.”

Becker suggests setting reasonable expectations and priorities, focusing on what can be controlled and what has the biggest impact on an individual’s life.

“Opting into your health insurance for next year is pretty important, especially if you’re struggling in other areas,” Becker said. “Organizing your closet, although it might be driving you crazy, is not nearly as important. So really try to look at what your expectations are for yourself and what is within your control.”

Becker adds that feelings of being stressed and overwhelmed are not directly attributable to any diagnoses alone.

“We don’t want to say that every time someone is experiencing financial stressors that they are going to develop depression, because that’s not accurate,” she said. “That can be dangerous territory.”