The socioeconomic and mental health costs of Covid: why policy matters

Morris Altman, Hannah Altman and Louise Lamontagne

Chapter 7 in How to Manage Covid-19 and Other Pandemics, 2026, pp 121-140 from Edward Elgar Publishing

Abstract: This chapter explores the broad socioeconomic and mental health costs of extreme lockdowns. Drawing on extensive cross-country evidence, it shows how hard policies disproportionately hurt lower-income populations, small businesses, and vulnerable groups. By contrast, countries that pursued softer, targeted approaches generally avoided deep economic disruption and widespread psychological distress. The chapter also examines the long-term fiscal consequences of pandemic relief spending, warning that rising deficits could lead to future austerity. The authors argue that the harms from strict lockdowns—including increased anxiety, educational setbacks, and deepening inequality—often outweighed their intended health benefits. Critically, these outcomes were largely avoidable. By choosing more balanced, intelligently designed soft policies, governments could have protected public health while also safeguarding economic and social resilience. Through comparative analysis, the chapter underscores the book's central conclusion: that well-calibrated, adaptive measures not only reduced mortality but also preserved broader societal well-being.

Keywords: Economic impact; Mental health challenges; Lockdown consequences; Policy trade-offs; Social costs; Avoidable costs (search for similar items in EconPapers)
Date: 2026
ISBN: 9781802204421
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