Will Wilkinson (2007) on Happiness and Policy

Will Wilkinson, “In Pursuit of Happiness Research: Is It Reliable? What Does It Imply for Policy?” Policy Analysis no. 590, April 11, 2007.

• Wilkinson challenges three claims: (1) the US-market style approach and restricted welfare state are bad for happiness; (2) positional externalities justify progressive taxation; and, (3) economic growth is unimportant for happiness. 

• Do people understand their own affective states? If we have neural habituation, no. We can feel terrific and not notice. Think of all those people who were constantly suffering before antibiotics and other medical advances. 

• We can be sad and happy simultaneously. Happiness itself is multidimensional; even happiness researchers can’t agree on how to measure it. 

• Asking if it is better to live in Denmark or the US is a bit like asking whether it is better to live in the city or the country. It depends. The US actually ranks pretty high in measured happiness, incidentally. 

• There isn’t much evidence that lower inequality, a more advanced welfare state, or higher government spending, raise subjective well-being, even among the poor or the left-leaning. 

• While income inequality has been rising of late in the US, inequality in happiness is falling. 

• Economic freedom is a strong correlate with subjective well-being. 

• Culture allows us to embed status-seeking within positive sum environments.