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THEME: Mental Health of the Minimum Wage and Economic Inflation
Term Group Project: Leadership in Healthcare Leadership and Strategy Capstone
Part II
For Part II of your research project, focus on creating a comprehensive Implementation Plan and outlining methods for Evaluation and Sustainability.
Remember, your paper should span 5-8 pages, adhering to APA style, and include at least three reference sources.
Implementation Plan:
Action Plan Development: Outline a step-by-step plan to execute your leadership strategy. Discuss the specific actions required, responsible parties, and expected outcomes.
Timelines: Establish clear deadlines for each phase of the plan. How do these timelines ensure timely and efficient implementation?
Resource Allocation: Detail the resources (financial, human, technological) needed. How will you distribute these resources effectively?
Stakeholder Engagement: Propose strategies for engaging key stakeholders. How will their input or involvement be solicited and incorporated?
Challenges and Solutions: Anticipate potential obstacles to your plan’s success. What proactive measures or solutions will address these challenges?
Evaluation and Sustainability:
Effectiveness Evaluation: How will you assess the strategy’s impact? Consider both qualitative and quantitative evaluation methods.
Adaptability and Scaling: How can your strategy adapt to changing circumstances or scale up if successful?
Ensure to discuss in detail any of the strategies/implementation plans you’ve learned throughout the course, linking them to your project’s objectives. Your paper should not only reflect comprehensive planning and foresight but also demonstrate an understanding of the theoretical underpinnings discussed during the course. Mental Health of the Minimum Wage and Economic Inflation
Caroline Quiñones
Darryl Chaves
Anylizauri Dávila
MBA Program, Carlos Albizu University
HIMP 503: International Practicum
Dr. Tonya White
March 2, 2024.
Mental Health of the Minimum Wage and Economic Inflation
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Mental Health of the Minimum Wage and Economic Inflation
Minimum wage and inflation affect public and mental health, whereby minimum wage
and inflation adjustments can worsen stress, anxiety, and other mental health difficulties because
economic variables affect lives and well-being. When inflation lowers earnings, people struggle
financially. It can cause tension and worry as people work to support their families and live
comfortably (Graham et al., 2023). Job insecurity and lack of funds for needs cause depression,
powerlessness, and suicidal thoughts. Rising living costs and stagnant income aggravate
inequality and mental health support for marginalized groups. Addressing the mental health
effects of minimum wage and economic inflation is crucial to improving society’s health and
eliminating health inequities. This paper discusses the issue’s history, impact, and public health
using PEST and SWOT tools to identify leadership challenges and opportunities and create a
strategic plan based on leadership theories and practices.
Research Findings
Exploring the intricate connections between minimum wage, economic inflation, and
mental health unveils a compelling narrative with profound impacts on individuals and public
well-being. The historical backdrop of minimum wage laws underscores the global and local
variations in labor compensation, emphasizing the quest for equitable pay. Research illuminates
the undeniable link between low wages and mental health struggles, particularly stress and
anxiety stemming from the struggle to meet basic needs. Economic inflation, according to
Fielding (2022) “is the rate of increase in prices over a given period of time.” People are being
affected by a steady rise in prices, which amplifies financial pressures, especially for those on
fixed or low incomes, intertwining economic stability with mental wellness.
Mental Health of the Minimum Wage and Economic Inflation
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Background
Minimum wage laws have a history dating back to the late 19th century, born out of
concerns over worker mistreatment and poverty. The primary goal was to set a wage floor that
would enable individuals and families to afford the essentials of life. However, as time has
passed, the widening gap between minimum wages and the cost of living has emerged as a
pressing issue. Economic inflation, marked by a continual uptick in the overall price level of
goods and services, adds another layer of complexity to the situation. With prices on the rise, the
purchasing power of wages may decline, creating financial pressures for individuals, especially
those dependent on minimum wage earnings. This convergence of factors raises valid worries
about the potential repercussions on mental well-being.
Current Impact
Recent studies consistently underscore the link between meager wages, economic
inflation, and negative mental health consequences. Those earning minimum wage often face
heightened stress and anxiety as they navigate the hurdles of financial strain. Research, such as
the investigations conducted by Kim et al. (2018) and Smith and Thompson (2020), has
illuminated a notable connection between limited income, financial instability, and an elevated
likelihood of encountering mental health challenges. The compounding impact of economic
inflation compounds these difficulties, escalating living expenses and disrupting the financial
equilibrium of individuals with low incomes. The combined pressure of struggling to fulfill basic
needs coupled with the persistent weight of financial unpredictability can contribute to mental
health complexities, encompassing conditions like depression and anxiety disorders.
Relevance to Public Health
Mental Health of the Minimum Wage and Economic Inflation
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The impact of minimum wage and economic inflation on public health resonates deeply.
Mental well-being stands as a core pillar of overall health, with economic elements significantly
influencing mental wellness across populations. Elevated levels of financial strain and mental
health issues not only impact individuals but also cast a shadow on public health at large.
Emphasized by the World Health Organization (WHO), mental health holds a pivotal role in
public health, with socioeconomic factors serving as vital drivers of mental well-being. Thus,
policies regarding minimum wage and initiatives to tackle economic inflation are intricately
intertwined with public health efforts focused on enhancing mental health outcomes across
society.
PEST Analysis
Applying a PEST framework to dissect this issue reveals a tapestry woven from political,
economic, sociocultural, and technological threads. A PEST analysis according to Kenton (2024)
“is a management method whereby an organization can assess major external factors that
influence its operation in order to become more competitive in the market.” Political decisions,
such as minimum wage policies and social welfare measures, directly impact individuals, while
societal norms and cultural norms shape how mental health issues are perceived in a economic
context. The evolving landscape of technology introduces new layers to the discussion,
influencing job opportunities and healthcare accessibility.
Political decisions reverberate through society, shaping the well-being of individuals
through policies on minimum wage, economic stability, and social welfare. Policymakers face
the delicate task of balancing economic imperatives with mental health considerations.
Additionally, social attitudes and cultural norms play a pivotal role in framing mental health
challenges tied to economic factors. Leaders must navigate this sociocultural landscape to foster
Mental Health of the Minimum Wage and Economic Inflation
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understanding, destigmatize financial struggles, and champion policies that prioritize mental
wellness.
Economic factors, when viewed through the lens of inflation, significantly impact
financial stress and mental health. The escalating general price level disrupts purchasing power,
straining individuals on fixed or low incomes as they grapple with rising costs. This economic
stress directly influences mental health, with financial strain often leading to mental health
issues. Policymakers and leaders must factor these economic dynamics into strategies addressing
mental health challenges associated with inflation.
Sociocultural elements introduce nuanced layers to the intersection of minimum wage,
economic inflation, and mental health. Cultural norms and societal perceptions of economic
success contribute to the stigma surrounding low wages. Addressing mental health issues
necessitates not only economic interventions but also cultural shifts that destigmatize financial
challenges and promote a holistic view of well-being. Leaders have an opportunity to engage
with communities, influencers, and cultural institutions to reshape the narrative surrounding
mental health and economic factors.
Technological advancements, including automation, present both challenges and
prospects in this dialogue. While technological progress impacts job availability and income
levels, it also offers avenues for enhancing mental health support. Integrating telehealth services
and technological solutions for mental health into broader strategies can address the mental
health implications of economic factors. Leaders must harness technology’s potential to improve
access to mental health resources and leverage innovation for comprehensive solutions.
Mental Health of the Minimum Wage and Economic Inflation
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Leadership Challenges
Leadership grapples with multifaceted challenges in navigating this intricate landscape.
Implementing policies concerning minimum wage adjustments and economic stability demands
nuanced decision-making to mitigate unintended consequences. Moreover, reshaping public
perceptions around economic factors and mental health requires strategic communication and
education efforts. Even though we have these challenges, we also have opportunities for
innovative, holistic strategies. Addressing the core issues of mental health linked to low wages
and economic inflation necessitates a comprehensive, inclusive approach that integrates solutions
across sectors.
Leadership faces the challenge of crafting effective policies that address the root causes
of mental health challenges tied to minimum wage and economic inflation. Balancing economic
considerations with mental wellness necessitates nuanced decision-making and cross-sector
collaboration. Furthermore, changing public perceptions about the relationship between
economic factors and mental health poses a significant leadership test. Leaders must engage in
transparent communication, educational initiatives, and advocacy to foster understanding and
garner support for comprehensive policies.
However, within these challenges lie opportunities for leaders to pioneer innovative
approaches. Developing policies that holistically tackle the interconnected issues of minimum
wage, economic inflation, and mental health can lead to sustainable solutions. Moreover, leaders
have a chance to raise awareness about the mental health impacts of economic factors, reducing
stigma and fostering a more compassionate societal approach. Engaging with a diverse array of
stakeholders, including community leaders, mental health professionals, and policymakers, can
foster collaboration and bolster support for holistic strategies.
Mental Health of the Minimum Wage and Economic Inflation
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Leadership Challenges and Opportunities
Leadership in addressing the impact of minimum wage and economic inflation on mental
health faces several challenges, including:
Balancing economic interests with public health priorities: Business and public health
must be balanced in minimum wage and inflation leadership. Economic stability and company
growth are important, but policymakers must consider mental health and well-being (Hill et al.,
2020). Achieving balance requires evaluating the long-term mental health implications of
compensation policies and inflation. Leaders face significant trade-offs between economic
growth and social equality. Conversation and collaboration with stakeholders can help leaders
build comprehensive economic and public health policies.
Advocating for policy changes to ensure fair wages and economic stability A leader
promotes equitable salaries and economic stability policy improvements. Raising the minimum
wage to match inflation and living costs requires leaders. Policies based on research and statistics
encourage fairness in wage and income inequality laws. Leaders must also address systemic
poverty and economic mobility barriers. Working with politicians, promoting social justice, and
organizing grassroots movements may alter the world and foster an inclusive economy.
Businesses, government, and civic society must work together to address minimum wage
and economic inflation’s mental health effects. Leaders need trust, transparency, and similar aims
to overcome entrenched interests and opinions. Multi-sectoral cooperation and inclusive
decision-making can help leaders solve difficult problems using stakeholders’ skills and
resources. Leaders must support CSR and employee well-being. Leaders improve community
mental health and economic sustainability via teamwork and accountability.
Opportunities for leadership
Mental Health of the Minimum Wage and Economic Inflation
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Evidence-based mental health resilience treatments during recessions give leadership
potential. Using research and data, leaders can uncover susceptible populations’ mental health
promotion and prevention initiatives. Community-based mental health services, cheap
psychotherapy, and school and workplace wellness activities may be offered. Economic stress
can harm mental health, but leaders can build community resilience by focusing on prevention
and early intervention. Leaders may assure culturally relevant, egalitarian, and diverse
population-specific solutions by collaborating with mental health specialists, researchers, and
advocacy groups.
Innovative solutions to economic inequity and instability create leadership possibilities.
Leaders must address the causes of poverty, racism, and social exclusion, not just symptoms.
Progressive economic policies that invest in education and skills training, distribute money
fairly, and empower marginalized groups may be needed. Technology, entrepreneurship, and
social innovation can help leaders reduce economic inequality and promote inclusive growth.
Leaders may harness stakeholders’ knowledge and cross-sectoral cooperation to create more
equitable and resilient economies, prioritizing everyone’s well-being.
Leadership Strategy
SWOT Analysis:
Strengths: Mental health knowledge and action can reduce minimum wage and inflation. In
the last decade, public discourse on mental health reduced stigma and improved recognition of
mental health illnesses as actual health issues. Understanding economic variables and mental
health has enabled focused interventions and policy changes to improve mental health (Hill et al.,
2020). Policy reform and community activism can address minimum wage, inflation, and mental
Mental Health of the Minimum Wage and Economic Inflation
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health. Growing public awareness influences public health policies to promote mental health and
well-being.
Weaknesses: Opponents of minimum wage increases hinder mental health efforts. Lobbying
groups, corporate interests, and lawmakers may oppose minimum wage increases due to
economic competition, job loss, and inflation. Resistance can slow growth and lower incomes,
worsening financial and mental health disparity in low-income and marginalized areas (Graham
et al., 2023). Lack of mental health aid and intervention programmes is another issue with
minimum wage, inflation, and mental health. Despite awareness, many communities lack
inexpensive, culturally competent mental health care. Many people receive poor mental health
care due to financing, labor, and healthcare system fragmentation.
Opportunities: Technology for mental health outreach and assistance expands services.
Patients of any region or socioeconomic status can receive evidence-based therapy, psychoeducation, and peer support via telehealth, smartphone apps, and digital platforms (Willcocks,
2024). Companies and healthcare providers can reach disadvantaged people and improve mental
health outcomes and inequities with technology.
Threats: In susceptible communities with economic instability, depressions and recessions
harm mental health. Stress, worry, and sadness from job loss, money issues, and future worries
can result from financial uncertainty (Kelly, 2023). Budget cuts and austerity measures during
economic downturns may reduce mental health service and support funding, worsening
inequities and limiting access to care.
Strategic Objectives
Minimum wage and economic inflation’s mental health implications aim for structural
change and community mental health justice. To keep salaries in step with the cost of living and
Mental Health of the Minimum Wage and Economic Inflation
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economic reality, support legislation that relates minimum wage hikes to inflation. Minimum
wage indexation to inflation can assist low-income workers in maintaining purchasing power and
reduce stress and mental health issues.
Moreover, business-led mental health assistance programmes improve employee wellbeing and resilience. By implementing workplace wellness initiatives, leaders may encourage
mental health, stress management, and work-life balance (Cvenkel, 2021). Counselling, mental
health resources, and wellness activities can boost employee resilience, productivity, and
satisfaction, reducing absenteeism.
Finally, economically unstable places need affordable mental health therapies to
eliminate mental health disparities and promote fairness. Leaders can ensure that economically
disadvantaged people receive timely and adequate care by investing in mental health
infrastructure and culturally and linguistically competent services. Reduce stigma, mobility, and
financial barriers to care and use community resources to develop a complete support network
for individuals and families.
Implementation Plan:
Collaboration, research, partnership-building, and continual assessment are needed to
address the mental health effects of minimum wage and economic inflation. Governments,
corporations, and community leaders must collaborate first to achieve systemic change and
mental health equity (Cvenkel, 2021). Leadership may promote stakeholder communication and
consensus to address economic and mental health concerns and establish collaborative solutions
emphasizing individual and community well-being.
Mental health groups, educational institutions, and grassroots efforts reduce mental health
disparities and build community resilience by sharing expertise, resources, and networks (Hill et
Mental Health of the Minimum Wage and Economic Inflation
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al., 2020). Strategic partnerships with like-minded groups can increase impact, complement
strengths, and reach new audiences. These collaborations can coordinate and holistically address
complex mental health issues caused by minimum wage and economic inflation by sharing
resources, skills, and expertise.
Conclusion
In general, minimum wage, economic inflation, and mental health demonstrate how
economic policies, social variables, and public health interact. Recognizing the impact of
economic hardship on mental health and emphasizing proactive leadership can make societies
more egalitarian and strong. Continued lobbying for legislative reforms, stakeholder
engagement, mental health awareness and DE stigmatization may reduce systemic inequities and
build a future where everyone succeeds mentally, emotionally, and economically. Social justice,
compassion, and fairness increase mental health and societal inclusion.
Mental Health of the Minimum Wage and Economic Inflation
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References
Cvenkel, N. (2021). Work-Life Balance and Well-Being at Work. In Springer eBooks (pp. 429–
451). https://doi.org/10.1007/978-3-030-42465-7_19
Fielding, S. (2022, June 31). High Inflation Rates Impact Almost Every Aspect of Our Lives,
Including Mental Health. Verywell Mind. https://www.verywellmind.com/how-rising
inflation-is-impacting-mental-health-5546955
Graham, B. A., Sinclair, R. R., & Sliter, M. T. (2023). Job insecurity and health and well-being:
What happens when you really need or love your job? Economic & Industrial
Democracy. https://doi.org/10.1177/0143831×231183995
Hill, K., Hirsch, D., & Davis, A. (2020). The role of social support networks in helping low
income families through uncertain times. Social Policy and Society, 20(1), 1–16.
https://doi.org/10.1017/s1474746420000184
Kelly, N. (2023, February 28). How recessions impact mental health. MDPI Blog.
Kenton, W. (2024, February 27). What Is PEST Analysis? Its Applications and Uses in Business.
Investopedia. https://www.investopedia.com/terms/p/pest-analysis.asp
Kim, T. J., & von dem Knesebeck, O. (2018). Is an insecure job better for health than having no
job at all? A systematic review of studies investigating the health-related risks of both job
insecurity and unemployment. BMC Public Health, 18(1), 1-12. DOI: 10.1186/s12889018-5216-1
Ross, J., & Welsh, J. (2020). Understanding the “tipped minimum wage”: Critical directions for
US policy research. Social Policy and Society, 20(2), 192–210.
https://doi.org/10.1017/s1474746420000214
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Smith, M. P., & Thompson, M. (2020). Minimum Wage Impacts on Mental Health. The Journal
of Sociology & Social Welfare, 47(1), 143-160.
Willcocks, L. P. (2024). Automation, digitalization and the future of work: A critical review.
Journal of Electronic Business & Digital Economics. https://doi.org/10.1108/jebde-092023-0018
World Health Organization. (2014). Social determinants of mental health. Geneva: World Health
Organization. https://www.who.int/publications/i/item/9789241506809
