The Impact of Advanced Capitalism on Well-being: an Evidence-Informed Model

Advanced capitalism (AC) is a macro-economic and macro-cultural system that exerts profound influence on individual well-being. AC has led to great prosperity since the Second World War and has been of substantial benefit to well-being, providing levels of personal and political freedom, as well as infrastructure, health, and social provisions unheard of throughout most of human history. Nevertheless, growing levels of inequality within AC countries alongside recent economic stagnation and constraints have resulted in diminished opportunities and increasing insecurity for many citizens. This paper presents an integrative, evidence-informed model of the impact of AC on well-being. It considers the evidence in relation to this model and the hypothesis that AC can have detrimental consequences for well-being. The model identifies two distinct macro-cultural domains that interact to influence adjustment. The first domain involves marked increases in family instability and employment insecurity that characterize AC societies, creating AC-specific stressors in these areas. The second domain involves AC-specific socialization processes that promote success, status, and self-image, alongside the need to develop a market-driven identity. The model finds broad support for AC-specific stressors and variable support across AC-specific socialization processes. While there is evidence to inform each of the respective domains, interactions between domains have rarely been investigated. To address vulnerabilities that AC creates for well-being, recommendations are made to benefit adjustment including enhancing personal agency, increasing the stability of interpersonal bonds, and addressing social inequalities.