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Happiness: Economics

A guide to happiness, including information on the brain, religion, economics, environment, gratitude, children, and more.

Internet Resources

The Economics of Happiness

Economic globalization has led to a massive expansion in the scale and power of big business and banking. It has also worsened nearly every problem we face: fundamentalism and ethnic conflict; climate chaos and species extinction; financial instability and unemployment. There are personal costs too. For the majority of people on the planet, life is becoming increasingly stressful. We have less time for friends and family and we face mounting pressures at work.

Source: Kanopy

Perspectives

Happiness: A Revolution in Economics

Revolutionary developments in economics are rare. The conservative bias of the field and its enshrined knowledge make it difficult to introduce new ideas not in line with received theory. Happiness research, however, has the potential to change economics substantially in the future. Its findings, which are gradually being taken into account in standard economics, can be considered revolutionary in three respects: the measurement of experienced utility using psychologists' tools for measuring subjective well-being; new insights into how human beings value goods and services and social conditions that include consideration of such non-material values as autonomy and social relations; and policy consequences of these new insights that suggest different ways for government to affect individual well-being. In Happiness, emphasizing empirical evidence rather than theoretical conjectures, Bruno Frey substantiates these three revolutionary claims for happiness research. After tracing the major developments of happiness research in economics and demonstrating that we have gained important new insights into how income, unemployment, inflation, and income demonstration affect well-being, Frey examines such wide-ranging topics as democracy and federalism, self-employment and volunteer work, marriage, terrorism, and watching television from the new perspective of happiness research. Turning to policy implications, Frey describes how government can provide the conditions for people to achieve well-being, arguing that a crucial role is played by adequate political institutions and decentralized decision making. Happiness demonstrates the achievements of the economic happiness revolution and points the way to future research.

Stumbling on Happiness

Bringing to life scientific research in psychology, cognitive neuroscience, philosophy, and behavioral economics, this bestselling book reveals what scientists have discovered about the uniquely human ability to imagine the future, and about our capacity to predict how much we will like it when we get there.  * Why are lovers quicker to forgive their partners for infidelity than for leaving dirty dishes in the sink? * Why will sighted people pay more to avoid going blind than blind people will pay to regain their sight? * Why do dining companions insist on ordering different meals instead of getting what they really want? * Why do pigeons seem to have such excellent aim; why can't we remember one song while listening to another; and why does the line at the grocery store always slow down the moment we join it? In this brilliant, witty, and accessible book, renowned Harvard psychologist Daniel Gilbert describes the foibles of imagination and illusions of foresight that cause each of us to misconceive our tomorrows and misestimate our satisfactions. With penetrating insight and sparkling prose, Gilbert explains why we seem to know so little about the hearts and minds of the people we are about to become.

The Hacking of the American Mind

"Explores how industry has manipulated our most deep-seated survival instincts."--David Perlmutter, MD, Author, #1 New York Times bestseller, Grain Brain and Brain Maker The New York Times-bestselling author of Fat Chance reveals the corporate scheme to sell pleasure, driving the international epidemic of addiction, depression, and chronic disease.   While researching the toxic and addictive properties of sugar for his New York Times bestseller Fat Chance, Robert Lustig made an alarming discovery--our pursuit of happiness is being subverted by a culture of addiction and depression from which we may never recover.             Dopamine is the "reward" neurotransmitter that tells our brains we want more; yet every substance or behavior that releases dopamine in the extreme leads to addiction. Serotonin is the "contentment" neurotransmitter that tells our brains we don't need any more; yet its deficiency leads to depression. Ideally, both are in optimal supply. Yet dopamine evolved to overwhelm serotonin--because our ancestors were more likely to survive if they were constantly motivated--with the result that constant desire can chemically destroy our ability to feel happiness, while sending us down the slippery slope to addiction. In the last forty years, government legislation and subsidies have promoted ever-available temptation (sugar, drugs, social media, porn) combined with constant stress (work, home, money, Internet), with the end result of an unprecedented epidemic of addiction, anxiety, depression, and chronic disease. And with the advent of neuromarketing, corporate America has successfully imprisoned us in an endless loop of desire and consumption from which there is no obvious escape.             With his customary wit and incisiveness, Lustig not only reveals the science that drives these states of mind, he points his finger directly at the corporations that helped create this mess, and the government actors who facilitated it, and he offers solutions we can all use in the pursuit of happiness, even in the face of overwhelming opposition. Always fearless and provocative, Lustig marshals a call to action, with seminal implications for our health, our well-being, and our culture.

Nudge: Improving Decisions about Health, Wealth, and Happiness

From the winner of the 2017 Nobel Prize in Economics, Richard H. Thaler, and Cass R. Sunstein: a revelatory look at how we make decisions--for fans of Malcolm Gladwell's Blink and Daniel Kahneman's Thinking Fast and Slow New York Times bestseller Named a Best Book of the Year by The Economist and the Financial Times Every day we make choices--about what to buy or eat, about financial investments or our children's health and education, even about the causes we champion or the planet itself. Unfortunately, we often choose poorly. Nudge is about how we make these choices and how we can make better ones. Using dozens of eye-opening examples and drawing on decades of behavioral science research, Nobel Prize winner Richard H. Thaler and Harvard Law School professor Cass R. Sunstein show that no choice is ever presented to us in a neutral way, and that we are all susceptible to biases that can lead us to make bad decisions. But by knowing how people think, we can use sensible "choice architecture" to nudge people toward the best decisions for ourselves, our families, and our society, without restricting our freedom of choice. More than 750,000 copies sold

The Pursuit of Happiness

In The Pursuit of Happiness, the latest addition to the Brookings FOCUS series, Carol Graham explores what we know about the determinants of happiness, across and within countries at different stages of development. She then takes a look at just what we can do with that new knowledge and clearly presents both the promise and the potential pitfalls of injecting the "economics of happiness” into public policymaking. This burgeoning field, largely a product of collaboration between economists and psychologists, is gaining great currency worldwide. One of a handful of pioneers to study this topic a mere decade ago, Graham is understandably excited about how far the concept has come and its possible utility in the future. The British, French, and Brazilian governments already have introduced happiness metrics into their benchmarks of national progress, and the U.S. government could follow suit. But "happiness” as a yardstick to help measure a nation’s well-being is still a relatively new approach, and many questions remain unanswered. The Pursuit of Happiness spotlights the innovative contributions of happiness research to the dismal science. But it also raises a cautionary note about the issues that still need to be addressed before policymakers can make best use of them. An effective definition of well-being that goes beyond measuring income--the Gross National Product approach--could very well lead to improved understanding of poverty and economic welfare. But the question remains: how best to measure and quantify happiness? While scholars have developed rigorous measures of well-being that can be included in our statistics--as the British are already doing--to what degree should we use such metrics to shape and evaluate policy, particularly in assessing development outcomes? Graham considers a number of unanswered questions, such as whether policy should be more concerned with increasing day-to-day contentment or with providing greater opportunity to build a fulfilling life. Other issues include whether we care more about the happiness of today’s citizens or that of future generations. Policies such as reducing our fiscal deficits or reforming our health care system, for example, typically require sacrificing current consumption and immediate well-being for better long-run outcomes. Another is whether policy should focus on reducing misery or raising general levels of well-being beyond their relatively high levels, in the same way that reducing poverty is only one choice among many objectives in our macroeconomic policy. Employing the new metrics without attention to these questions could produce mistakes that might undermine the long-term prospects for a truly meaningful economics of well-being. Despite this cautionary note, Graham points out that it is surely a positive development that some of our public attention is going to better understanding and enhancing the well-being of our citizens, rather than emphasizing the roots of their divide.

Differences in satisfaction of the upper, middle and lower class in the United States in 2012

Source: 

Pew Research Center. (August 27, 2012). Differences in satisfaction of the upper, middle and lower class in the United States in 2012 [Graph]. In Statista. Retrieved September 06, 2021, from https://www.statista.com/statistics/241864/thoughts-on-the-well-being-of-the-upper-middle-and-lower-class-in-the-united-states/