Polices for Increasing Happiness

Description

(Richard Layard, "Happiness: Has Social Science a Clue. Lionel Robbins Memorial Lectures 2002-2003.)

This table shows the other various causes that contribute to a loss in happiness. These are pegged or fixed to a drop in Income by a third. Shown by designating Income = 1

• As seen on the table Unemployment causes a drastic loss in overall happiness. Also in that same section, job security is a big variable, insecure thoughts lead to an drop of 1.5 points and also high unemployment rates result in that same 1.5 point drop.

• Another section illustrated is the idea of family. One main factor that contributes to happiness is the relation of husband and wife. Families that break up are quite substantially less happy.

• Health can also be a major factor in happiness. Policies that implement increased health care and benefits could substantially increase happiness. Mental health is a enormously overlooked section and making psychiatry a main project could change all this.

• Mentioned in previous areas is the idea that status relative to other people affects happiness. This idea could be fashioned into a economic policy through certain tax theories.

POLICIES

Employment policy - Human happiness is more affected by whether or not one has a job than by what kind of job it is. A three step process would help limit the negative processes that a lack of job create.

1. The philosophy of any job is better than no job should be adopted. A more pro-active placement service should be instituted to acomplish this philosophy
2. On a similar note, jobs should be guaranteed to unemployed people up to a year of unemployment. This puts pressure on the government to make work and the individual to take it. This could be accomplished with a mixture of subsidies, supported work and training.
3. Allowing low paying jobs is acceptable, but attached to these jobs should be in-work benefits. This should be coupled with the idea of reducing low skill areas. --Richard Layard [1]

Taxation Policy - In regards to the idea that people judge their happiness relative to the income they recieve compared to other people the taxation policy most noted is heavy burdens placed on the wealthiest people in order to create an equal society. If people were to see themselves as having just as much as the next person they wouldn't be able to feel that they were inferior and this couldn't cause a drastic drop in happiness levels. Worries about people reducing their productivity should also not be a concern. "If the top rate tax bracket were raised from 33% to 50% would Tom Cruise stop making movies or Oprah cancel her program, of course not." --Robert Gordon, [2]

Choice Between Goods- Any consumption tax should be levied at the same rate on all goods and services unless there is strong evidence about differential complementarities with leisure.

Redistribution-If lump sum transfers could be made, these should equilise the marginal utility of income experienced by each individual. --Richard Layard [3]

Other Economists make similar arguments

In the 21st century, governments committed to improving the happiness of their citizens will need to:

• redistribute work, both to provide jobs for those who do not have them and to relieve the pressure on those who are overworked;
• promote more satisfying jobs with greater emphasis on the intrinsic benefits of work;
• invest in developing the personal skills that make relationships survive the difficult times;
• genuinely redistribute income so that those living in poverty have adequate access to the material needs of life;
• refuse to sacrifice the natural environment on the altar of higher incomes;
• build the infrastructure for more supportive and trusting communities; and
• develop and apply better measures of social progress so that governments and communities can accurately determine where they are going.

Clive Hamilton

Criticisms of Government Policies

"A Government that says it wants to make us happy misses the obvious fact that a government can't give us happiness, it can only give us the right to pursue happiness-because happiness is what we get when we are in control and assume responsibility ourselves." --Norberg [4]

Some economists believe that the only action the government should take to increase happiness would be release the strains of any policies all together, a complete Lassiez Faire society. They believe that when people feel in control and think with a sense of optimism will be more successful and happy. They are very critical of Layard's "paternalistic" instutions that they feel would strip us of our freedoms.

References:Happiness