❝ The Socialist candidate for the French presidency, Benoit Hamon, says he doesn’t believe in the “myth” and “quasi-religion” of growth — it’s part of the “consumerist, productivist and materialist model” of development, he argues. That’s outside the economic mainstream, and many see those views as a symptom of the meltdown of the global left. But the recently-released Global Happiness Report 2017, produced under the auspices of the United Nations, shows that Hamon just may be ahead of the curve.
❝ Since the project’s inception five years ago, small, rich Western European nations have led the list. In this year’s ranking, compiled using the last three years of data, they make up the top six, with Norway, Denmark and Iceland leading the world. In terms of growth, these nations have long lagged behind the global level…
Meanwhile, China, which has one of the highest sustained growth rates in the world, is not progressing in terms of happiness. The happiness report contains an entire chapter on that, written by Richard Easterlin, Fei Wang and Shun Wang. They pointed out that based on previous studies, China should have seen an increase in well-being of one full point on the ten-point Cantril Scale. Instead, Chinese people are just about as happy as they were in 1990.
❝ The team of respected economists Jeffrey Sachs, Richard Layard and John Helliwell suggests six variables explain the subjective well-being levels: wealth expressed as per capita GDP, the level of social support, healthy life expectancy, freedom to make life choices, generosity (the prevalence of giving to charitable causes), and perceptions of corruption…
❝ …The experience of the small European nations at the top of the table shows that once a certain level of wealth is achieved, growth isn’t as important to happiness levels. As long as per capita GDP is relatively stable, the other factors do their job, and if there’s a problem with them — for example, health care becomes less accessible or deteriorates, the social fabric starts fraying, people grow more selfish or freedom erodes — people tend to feel unhappy despite an unchanged comfort level.
The happiness-related findings are politically important. In 2015, George Ward of the London School of Economics analyzed European election data to show that subjective well-being was a stronger predictor of the vote for the incumbent government than GDP growth or the unemployment level. It’s hard for technocratic elites to acknowledge that the relative electoral success of nativist parties could be dictated by a yearning for social cohesion that they believe is undermined by immigration and globalization; it’s even harder to come up with ways of fixing the problem.
❝ Far left politicians such as Hamon at least give it a try. The French presidential candidate wants to shift the focus from growth to the social support network, primarily health care and education. He also proposes a universal basic income and a shorter workweek, made possible by higher taxes on the rich. It could help or it could backfire…
❝ …Regardless of whether their specific recipes are workable, the left-wing radicals are right in trying to shift the rich world’s policy focus. There’s plenty of wealth, that goal is already achieved. Good policy is a matter of directing it toward the determinants of happiness.
I’ll second that emotion.