Happy? (Mudvayne Song) - Economic Views

Economic Views

Common market health measures such as GDP and GNP have been used as a measure of successful policy. On average richer nations tend to be happier than poorer nations, but this effect seems to diminish with wealth. This has been explained by the fact that the dependency is not linear but logarithmic, i.e., the same percentual increase in the GNP produces the same increase in happiness for wealthy countries as for poor countries.

Libertarian think tank Cato Institute claims that economic freedom correlates strongly with happiness preferably within the context of a western mixed economy, with free press and a democracy. According to certain standards, East European countries (ruled by Communist parties) were less happy than Western ones, even less happy than other equally poor countries.

It has been argued that happiness measures could be used not as a replacement for more traditional measures, but as a supplement. According to professor Edward Glaeser, people constantly make choices that decrease their happiness, because they have also more important aims. Therefore, the government should not decrease the alternatives available for the citizen by patronizing them but let the citizen keep a maximal freedom of choice.

It has been argued that happiness at work is one of the driving forces behind positive outcomes at work, rather than just being a resultant product.