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Layard is highly critical of many current policies within government and economics. Economists often calculate policy solely in terms of costs and benefits for the economy, ignoring the effects that policies can have the happiness of a society. In addition, governments often focus more on short-term gain, ignoring what should be the main goal of policymakers: improving happiness of the people. | |||
Layard is highly critical of policies that are adopted because they increase GDP, even though they may have other effects on happiness which are negative. (7)He does not believe we should have such a great dichotomy between economics and the effect on happiness. Simply, when implementing policy, economists should take into account the effects that their policies will have on the well-being of the society as a whole. | |||
Layard is highly critical of certain aspects of Western society, such as the great focus on performance, high levels of stress, job insecurity, and high level of geographical mobility which leads to high levels of criminality and a breakup of families and communities. | |||
He believes we have a lot to learn from "old Europe" where there was less of a focus on productivity and performance, and more on stability and happiness. | He believes we have a lot to learn from "old Europe" where there was less of a focus on productivity and performance, and more on stability and happiness. | ||
=Employment= | |||
= | ==Unemployment== | ||
It is widely accepted that unemployment is generally a disaster for a person. Layard believes that the biggest impact of unemployment is on a person's happiness. When a person loses their job, they cease to feel productive and needed by society. Economists, in contrast, do not consider the impacts of unemployment on happiness. They measure the loss of unemployment as the loss of income to society. | It is widely accepted that unemployment is generally a disaster for a person. Layard believes that the biggest impact of unemployment is on a person's happiness. When a person loses their job, they cease to feel productive and needed by society. Economists, in contrast, do not consider the impacts of unemployment on happiness. They measure the loss of unemployment as the loss of income to society. | ||
Layard believes low unemployment should be a key goal for any government. He believes that any job is better than now job. Layard believes strongly in welfare-to-work. | Layard believes low unemployment should be a key goal for any government. He believes that any job is better than now job. Layard believes strongly in welfare-to-work. (4-5) | ||
==Job Security== | |||
A desire for security is a central part of human nature. As a result, people are also happier when they have job security. However, again, there is a contrast between happiness and economics. Many economists support job flexibility and mobility. Layard argues that all governments should have legislation for reasonable job security. (5-6) | |||
==Stress== | |||
Another important aspect of work that affects overall happiness is the pace of work. The greater the pressure to acheive targets, the higher a person's stress levels. Layard gives an example from the Eurobarometer survey in 1996. This survey asked people in every country whether in the last 5 years there had been a "significant increase in the stress involved in your job." Close to 50% said Yes, the stress had increased, and under 10% said it had | |||
decreased. (6) | |||
= | ==A Change in Cultural Priorities?== | ||
Layard is highly critical of high levels of geographical mobility. He acknowledges the reason why economists generally favor geographically mobility: it moves people from places where they are less productive to ones where they are more productive. However, it also has a number of negative consequences for happiness, particularly on family and on criminality. | Layard emphasises how focused Western society is on performance and productivity, ignoring the more basic need of happiness. He believes society needs an overall change in cultural priorities. Performance needs to be "put into its proper place," and happiness needs to become the number one goal of society. (6) | ||
First, geographical mobility increases family break-up. If people stay in one place, they are less likely to break up, because they "have a network of social support, which is less common in more mobile situations." ( | |||
Second, greater geographical mobility leads to increased crime. Layard points to studies that have shown that crime is lower when people trust each other, and "people trust each other more if fewer peopel are moving house and the community is more homogenous." ( | According to Layard, there is a great contradiction in the idea that, as people get richer, they experience increased insecurity. Layard believes that as incomes increase, people should have more security and a quiet mind, not vice versa. Anglo-American society values novelty. However, Layard believes we have a lot to learn from "old Europe," where, according to him, the value of security was better understood. (7) | ||
Layard states that one of the greatest failures of modern society is the growth of crime. Thus, the costs of mobility must be taken into account when policy makers decide on policies that affect geographical mobility. | |||
=Geographical Mobility= | |||
Layard is highly critical of high levels of geographical mobility. He acknowledges the reason why economists generally favor geographically mobility: it moves people from places where they are less productive to ones where they are more productive. However, it also has a number of negative consequences for happiness, particularly on family and on criminality. (7) | |||
==Families and Communities== | |||
First, geographical mobility increases family break-up. If people stay in one place, they are less likely to break up, because they "have a network of social support, which is less common in more mobile situations." (7) | |||
==Criminality== | |||
Second, greater geographical mobility leads to increased crime. Layard points to studies that have shown that crime is lower when people trust each other, and "people trust each other more if fewer peopel are moving house and the community is more homogenous." (7) | |||
Layard states that one of the greatest failures of modern society is the growth of crime. Thus, the costs of mobility must be taken into account when policy makers decide on policies that affect geographical mobility. (8) | |||
=Mental and Physical Health= | =Mental and Physical Health= | ||
Layard states that most of the worst unhappiness is caused by mental disorders, particularly depression and schizophrenia. He believes it is a complete scandal that society does no spend more on mental health. | Layard states that most of the worst unhappiness is caused by mental disorders, particularly depression and schizophrenia. He believes it is a complete scandal that society does no spend more on mental health. According to Layard: | ||
"Mental illness cuases half of all the measured disability in our society, and even if you add in premature death, mental illness accounts for a quarter of the total impact of disease... Roughly 25% of us experience serious mental illness during our lives, and about 15% experience major depression. Such depression can in most cases be helped by a combination of drugs and cognitive therapy. Yet only a quarter of people now suffering from depression are being treated, and most of them just get pills from a non-specialist GP." (8) | |||
Layard believes society should spend much more on mental and physical health, particularly psychiatric care. (8) | |||
=Political and Personal Freedom= | =Political and Personal Freedom= | ||
Layard describes that there are at least three dimensions to freedom: | Layard describes that people are happier when they have more political freedom. He explains that there are at least three dimensions to freedom: | ||
1. Political influence (on government policy) | 1. Political influence (on government policy) | ||
2. Political freedom (free speech) | 2. Political freedom (free speech) | ||
3. Economic freedom (freedom to do business.) | 3. Economic freedom (freedom to do business.) | ||
Each of these factors influences a person's happiness. Layard states a study by Bruno Frey, who did research on the impact of political freedom on happiness in Swiss cantons. He compared happiness in those Swiss cantons with the most frequent referenda with happiness in those cantons with the least frequent referenda. They difference in happiness was roughly equal to the effect of a doubling in income. Thus, the more political freedom, the happier a person. (9) | |||
As a result, Layard highlights the necessity for more local democracy and participation for the average person in government policy. (10) | |||
=An Improved Philosophy of Life= | |||
Aside from giving policy recommendations for government and economics, Layard also gives recommendations on how individuals can improve their happiness solely by altering slightly their philosophy of life. | |||
In addition, Layard emphasizes the need for reinforcing moral education. | |||
There are several philosophies that improve happiness: | |||
1.) People who believe in God are happier. (12) | |||
2.) People are much happier if they believe they live in a friendly and harmonious world. Those who trust others are happier. Unfortunately, over the years there has been a decline in trust in both the US and Britain (13-14) | |||
[[Image:Chart2.JPG]] | |||
3.) People who help others are happier. The pursuit of individual happiness is not a good formula for personal happiness. You will be happier if you also obtain happiness from the good fortunes of others. In fact, aiming for self-advancement will only produce anxiety. (15) | |||
=Conclusions= | =Conclusions= | ||
Richard Layard believes that improving the overall happiness of the society should be the main policy goal within government. Richard Layard proposes that policymakers should: | |||
1. Use taxation to discourage self-defeating work. | |||
2. Incentivate producers by professional norms, not by financial incentives | |||
3. Cease to promote the search for status by limiting dysfunctional advertising. | |||
4. Income needs to be redistributed towards where it makes the most difference. | |||
5. Promote secure work through welfare-to-work and reasonable employment protection. Also, people should receive secure pensions. | |||
6. Discourage a high level of geographical mobility. | |||
7. Increase funding for mental health care, particularly pyschiatric care. | |||
8. Encourage local democracy and participation in government. | |||
Source: Richard Layard, Lecture 3 | Source: Richard Layard, Lecture 3 | ||
---- | |||
[[Why is this important?]] | |||
link back to main page: | |||
[[Happiness Studies]] | |||
Latest revision as of 04:24, 3 December 2007
Layard is highly critical of many current policies within government and economics. Economists often calculate policy solely in terms of costs and benefits for the economy, ignoring the effects that policies can have the happiness of a society. In addition, governments often focus more on short-term gain, ignoring what should be the main goal of policymakers: improving happiness of the people.
Layard is highly critical of policies that are adopted because they increase GDP, even though they may have other effects on happiness which are negative. (7)He does not believe we should have such a great dichotomy between economics and the effect on happiness. Simply, when implementing policy, economists should take into account the effects that their policies will have on the well-being of the society as a whole.
Layard is highly critical of certain aspects of Western society, such as the great focus on performance, high levels of stress, job insecurity, and high level of geographical mobility which leads to high levels of criminality and a breakup of families and communities.
He believes we have a lot to learn from "old Europe" where there was less of a focus on productivity and performance, and more on stability and happiness.
Employment
Unemployment
It is widely accepted that unemployment is generally a disaster for a person. Layard believes that the biggest impact of unemployment is on a person's happiness. When a person loses their job, they cease to feel productive and needed by society. Economists, in contrast, do not consider the impacts of unemployment on happiness. They measure the loss of unemployment as the loss of income to society. Layard believes low unemployment should be a key goal for any government. He believes that any job is better than now job. Layard believes strongly in welfare-to-work. (4-5)
Job Security
A desire for security is a central part of human nature. As a result, people are also happier when they have job security. However, again, there is a contrast between happiness and economics. Many economists support job flexibility and mobility. Layard argues that all governments should have legislation for reasonable job security. (5-6)
Stress
Another important aspect of work that affects overall happiness is the pace of work. The greater the pressure to acheive targets, the higher a person's stress levels. Layard gives an example from the Eurobarometer survey in 1996. This survey asked people in every country whether in the last 5 years there had been a "significant increase in the stress involved in your job." Close to 50% said Yes, the stress had increased, and under 10% said it had decreased. (6)
A Change in Cultural Priorities?
Layard emphasises how focused Western society is on performance and productivity, ignoring the more basic need of happiness. He believes society needs an overall change in cultural priorities. Performance needs to be "put into its proper place," and happiness needs to become the number one goal of society. (6)
According to Layard, there is a great contradiction in the idea that, as people get richer, they experience increased insecurity. Layard believes that as incomes increase, people should have more security and a quiet mind, not vice versa. Anglo-American society values novelty. However, Layard believes we have a lot to learn from "old Europe," where, according to him, the value of security was better understood. (7)
Geographical Mobility
Layard is highly critical of high levels of geographical mobility. He acknowledges the reason why economists generally favor geographically mobility: it moves people from places where they are less productive to ones where they are more productive. However, it also has a number of negative consequences for happiness, particularly on family and on criminality. (7)
Families and Communities
First, geographical mobility increases family break-up. If people stay in one place, they are less likely to break up, because they "have a network of social support, which is less common in more mobile situations." (7)
Criminality
Second, greater geographical mobility leads to increased crime. Layard points to studies that have shown that crime is lower when people trust each other, and "people trust each other more if fewer peopel are moving house and the community is more homogenous." (7)
Layard states that one of the greatest failures of modern society is the growth of crime. Thus, the costs of mobility must be taken into account when policy makers decide on policies that affect geographical mobility. (8)
Mental and Physical Health
Layard states that most of the worst unhappiness is caused by mental disorders, particularly depression and schizophrenia. He believes it is a complete scandal that society does no spend more on mental health. According to Layard:
"Mental illness cuases half of all the measured disability in our society, and even if you add in premature death, mental illness accounts for a quarter of the total impact of disease... Roughly 25% of us experience serious mental illness during our lives, and about 15% experience major depression. Such depression can in most cases be helped by a combination of drugs and cognitive therapy. Yet only a quarter of people now suffering from depression are being treated, and most of them just get pills from a non-specialist GP." (8)
Layard believes society should spend much more on mental and physical health, particularly psychiatric care. (8)
Political and Personal Freedom
Layard describes that people are happier when they have more political freedom. He explains that there are at least three dimensions to freedom: 1. Political influence (on government policy) 2. Political freedom (free speech) 3. Economic freedom (freedom to do business.)
Each of these factors influences a person's happiness. Layard states a study by Bruno Frey, who did research on the impact of political freedom on happiness in Swiss cantons. He compared happiness in those Swiss cantons with the most frequent referenda with happiness in those cantons with the least frequent referenda. They difference in happiness was roughly equal to the effect of a doubling in income. Thus, the more political freedom, the happier a person. (9)
As a result, Layard highlights the necessity for more local democracy and participation for the average person in government policy. (10)
An Improved Philosophy of Life
Aside from giving policy recommendations for government and economics, Layard also gives recommendations on how individuals can improve their happiness solely by altering slightly their philosophy of life.
In addition, Layard emphasizes the need for reinforcing moral education.
There are several philosophies that improve happiness:
1.) People who believe in God are happier. (12)
2.) People are much happier if they believe they live in a friendly and harmonious world. Those who trust others are happier. Unfortunately, over the years there has been a decline in trust in both the US and Britain (13-14)
3.) People who help others are happier. The pursuit of individual happiness is not a good formula for personal happiness. You will be happier if you also obtain happiness from the good fortunes of others. In fact, aiming for self-advancement will only produce anxiety. (15)
Conclusions
Richard Layard believes that improving the overall happiness of the society should be the main policy goal within government. Richard Layard proposes that policymakers should:
1. Use taxation to discourage self-defeating work.
2. Incentivate producers by professional norms, not by financial incentives
3. Cease to promote the search for status by limiting dysfunctional advertising.
4. Income needs to be redistributed towards where it makes the most difference.
5. Promote secure work through welfare-to-work and reasonable employment protection. Also, people should receive secure pensions.
6. Discourage a high level of geographical mobility.
7. Increase funding for mental health care, particularly pyschiatric care.
8. Encourage local democracy and participation in government.
Source: Richard Layard, Lecture 3
link back to main page: Happiness Studies
