Poor and happy doesn’t work

happiness

What really makes people happy? Science has been studying this question for many years.

(Photo: dpa)

“If the government cannot create happiness for its people, then there is no reason for the government to exist.” This is how the government of Bhutan, the country in which increasing the happiness of the population is an official state goal, puts it. This target is also operationalized. In addition to the material standard of living, the topics of health, education, a clean environment and social cohesion are at stake.

In fact, economic happiness research shows that the happiness of the population depends to a large extent on these measurable and government-controllable factors. It is therefore not surprising that wealthy countries such as Finland, Denmark, Iceland and Switzerland top the relevant rankings, while Lebanon and Afghanistan bring up the rear. The correlation between gross domestic product (GDP) per capita and happiness is very high.

The case of the United States underlines that money is not everything. Despite having one of the highest per capita incomes, Americans only rank 16th due to a much lower life expectancy compared to similarly affluent countries. The lower level of public safety should also contribute to the relatively poor performance.

In Germany, there is a parallel development of GDP and happiness

The USA also shows that rising incomes do not always lead to greater life satisfaction. For example, US GDP per capita rose 65 percent between 1946 and 1970 with no effect on happiness. Similar developments have taken place in other countries. In Germany, on the other hand, GDP and happiness developed in the same direction in the ten years before Corona: We generated more per capita and were therefore happier.

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Venezuela fared differently. Once the fifth happiest country in the world, mismanagement, corruption and economic decline have led to a sharp decline in the population’s happiness. The formerly rich country is now behind Iraq in 108th place. No wonder, since more Venezuelans are fleeing the consequences of socialist policies than Syrians are fleeing the civil war.

The author

Daniel Stelter is the founder of the discussion forum beyond the obvious, which specializes in strategy and macroeconomics, as well as a management consultant and author. Every Sunday his podcast goes online at www.think-bto.com.

(Photo: Robert Recker/ Berlin)

In view of the dramatic increase in energy prices, we are now hearing from politicians that “we are all getting poorer”. As if we couldn’t do anything about it, we should submit to our fate. It would be up to politicians to counteract this with consistent measures and to overcome taboos that have become dear to us but are no longer up to date.

>> Also read here: Happiness research – about black sheep and good approaches

Some citizens may welcome this loss of wealth as part of the reorientation towards a more modest, climate-friendly life. However, the findings of happiness research are clear. In 125 countries examined, no case was found where falling GDP per capita went hand in hand with rising happiness. In two-thirds of the cases, happiness increased with GDP per capita, in the rest it remained at the same level.

Decreasing happiness and life satisfaction increase the risk of social, social and political conflicts occurring. We can already observe this in some neighboring countries, where radical and populist forces have been on the rise for some time.

The problem is that the stronger these forces become, the more difficult it becomes to deal with the underlying problems and the greater the temptation to reach for simple solutions.

We should do everything to prevent such a scenario for Germany. It is not enough to regret declining prosperity and to locate protests against government policy in the politically radical corner. Anyone who wants to maintain social and political stability takes his ministerial oath seriously to increase the benefits of the German people and avert harm to them.

More: Germans are a little happier again – but war and inflation are a burden

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