Psychology and economics: Exploring the link between well-being and wealth accumulation – Tyler Cowen

In this thought-provoking piece by Tyler Cown, he explores the link between psychological well-being and wealth accumulation. Examining studies from Ethiopia to Mexico, Cowen suggests that psychological interventions, such as aspirational videos and psychotherapy, can positively impact economic outcomes. While some interventions show promising long-term effects, questions arise about the scalability of these approaches. Cowen underscores the potential for economic growth by investing in psychological and psychotherapeutic infrastructure, proposing a nuanced exploration of the "psychology of poverty" and the role of culture in economic development.

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Want to Be Wealthy? You Might Try Therapy: Tyler Cowen

By Tyler Cowen

Economists are used to the idea that intervening in concrete ways — spending on development projects, for example, or on social services — can improve outcomes. But what about psychological interventions? Is it possible to make people wealthier simply by helping them feel better? What is the connection between psychotherapy, or pharmaceutical treatments, and wealth accumulation?

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