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Beyond psychological trauma, unmoderated online abuse operates as a hidden economic barrier. Credit: Unsplash/Ryoji Iwata

Economic Costs of Hate Speech

6 minutes of reading

Hidden Cost

While the sociocultural impacts of hate speech have been explored endlessly, its economic implications are not widely discussed yet. There is an urgency to analyse this subject further, especially at the time when platform monetisation thrives on provocative content.

However, a brief examination of the mechanics and psychological consequences of hate speech is necessary before we could delve into this.

When rage-bait culture becomes the norm, we lose sight of the fact that hate speech can impact its recipients beyond their emotional and psychological wellbeing. Indeed, derogatory narratives can easily evolve to psychological assault when there is a lack of platform moderation, creating a hostile feedback loop that causes dehumanising language to feel increasingly normal and acceptable.

Unfortunately, constant exposure to such negative content is shown to have increased the acceptance of hate speech by 40% among users. Depending on the intensity of hate speech one receives, its impacts can lead to measurable consequences, such as a 44% increase in anxiety and depression symptoms or a 2.5 times greater risk of self-harm among adolescents.

Remember the time when Twitter and Facebook used to be innocently referred to as a digital public square? Today, however, these purportedly safe spaces have emerged as sites of anticipated trauma, thanks to the mainstreaming of hate speech that forces victims into a state of constant, defensive cognitive processing. This also means that every time a victim goes online, they must already expect the costs that come with it.

This is where the discussion starts shifting to the domain of economics. What if victims are especially targeted for their visible identity, such as race, gender or religion?

Predictability of harm has been shown as a stronger driver of behavioural change than its severity. When psychological trauma cascades into societal withdrawal, victims may also lose access to the digital labour market, professional visibility and the social capital necessary for career advancement.

This is the point where hate speech emerges as a systemic exclusion that effectively deplatforms individuals from society as a whole, including their capacity to engage in economic activity.

Some quarters of the younger population have already taken steps so as not to fall victim to such extremity. There is an increasing trend of young people to delete their social media accounts in order to improve their mental health and increase life quality, avoiding the pitfalls that hate speech could threaten them with.

Amplifying Discriminatory Narratives

Online prejudice could also penetrate workspace and economic activities. When a firm’s decision-making processes are shaped by discriminatory views shared online, certain individuals could receive unfair treatment. This could manifest in such discriminatory practices as not employing Malay workers because they are deemed lazy or refusing Indians as tenants because of their race.

Concerningly, the majority of Malaysians (64%) had experienced some forms of discrimination in the past, including based on their ethnicity. Here, the practice of discrimination often manifests in matters related to employment, such as difficulties in securing jobs or disparities in pay. This shows that while the practice is often subtle in nature, discrimination causes ripple effects that could open the path for opportunities to some while blocking others.

Furthermore, this also means that discrimination could weaken businesses. Hiring based on prejudice instead of actual skills means lower productivity, worse outcomes and, ultimately, less money generated. When a qualified candidate loses a job opportunity, the company they apply to loses a potentially great employee. The economy, as a whole, loses out on what the person and the company could have contributed.

This is called market distortion in economics—a situation when external factors interfere with market process so that price and productivity plummet. It is a lose-lose situation that drags everyone down.

Hate and Loss

To explore further the economic impacts of hate speech, the authors conducted a study that looks at how derogatory comments on social media platforms could bear repercussions in the workplace.

One interviewee employed at a public history organisation shared that she began moderating and restraining her public appearance after finding some comments targeting her ethnicity. This includes engagements such as podcast and TV interviews, fearing that discussing sensitive issues could result in a backlash.

In another example, the employer of a pro-Palestinian online activist requested her to tone down her opinion on LinkedIn and to publish a disclaimer that her views do not represent the company’s. As her posts began gaining traction, criticism also started mounting, especially from detractors who do not share some of her views. She received hostile and Islamophobic attacks online that target her visible Muslim identity, causing anxiety and discomfort on the part of her employer and colleagues.

Notably, despite the perceived freedom for creative expression and relative lack of public scrutiny associated with it, hate speech has also found its way into the creative industry. A film producer created a film about a Muslim woman experimenting with her faith—obviously a sensitive subject in the Malaysian context. However, this had only incited online hostility to the filmmaker, with remarks such as “murtad (apostate) or “anjing penjajah (imperialist dog) thrown at him. He has also been accused of trying to liberalise Malay-Muslims. The hostile comments had bled into real life—the film was later banned by TV stations, and the producer was “blacklisted” by industry partners.

Another male informant was unfairly labelled a misogynist by Twitter users despite only expressing his views on feminist issues, which were intended to instigate further critical discussion. The individual has the academic credential and capability to discuss the matter within the corridor of Islam, but this did not stop online commenters from viewing his post with suspicion. The informant began self-censoring and limiting his appearance in work-related events—when individuals are stripped of the right to express their opinions, the underlying message is that they do not have rights and a place in society.

These instances indicate that hateful comments could easily find their way into victims’ means of living, altering their career trajectory and limiting economic opportunities. Moreover, it is an especially difficult challenge for those whose professions rely heavily on digital visibility. For content creators, activists or professionals with a public-facing role, persistent hateful attacks may discourage online participation, which indirectly affects their work performance.

Research has also shown that self-censorship is often used as a self-protecting measure, but this hinders professionals from fulfilling their best potential at work. This includes academics, politicians and media professionals alike, whose involvement in a discussion or debate about sensitive or controversial topics has become increasingly challenging due to the growing risk of online abuse. A large-scale study covering 15 countries showed that 73% polled female journalists experienced online violence, and 30% said they self-censor on social media, with 20% withdrawing from all online interaction.

Conclusion

Hate speech may indirectly limit economic mobility and access to opportunities by discouraging individuals from participating in public discourse. At the same time, it can promote discriminatory attitudes that influence hiring decisions, workplace treatment and access to professional opportunities.

The views expressed are those of the authors and do not necessarily reflect those of STRAT.O.SPHERE CONSULTING PTE LTD.

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