Polices for Increasing Happiness
(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.
- 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
- 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.
- 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]
