Note on Economics of Happiness
Theme Note on Student's Seminar Competition-2012
Topic - Economics of Happiness
Robert Kennedy, March 16, 1968
The Gross National Product (GNP) measures neither our wit, nor our courage, neither our wisdom nor our learning. GNP measures everything, in short, except that which makes life worthwhile.
We have certainly missed to have a proper look at these points in the past few decades of our relentless pursuit of economic growth. Despite the world's unprecedented wealth, there is vast insecurity, unrest and dissatisfaction. According to Prof. Jeffrey Sachs, the relentless pursuit of higher income is leading to unprecedented inequality and anxiety, rather than to greater happiness and life satisfaction. Economic progress is important and it can greatly improve the quality of life, but only if it is pursued in line with other goals.
In words of Prof. Simon Kuznets, 1962, an economist and the architect of the concept of GDP, “The welfare of a Nation can scarcely be inferred from a measurement of national income as defined by the GDP. Goals for more growth should specify of what and for what. What for whom is this growth for!”
Bhutan is a small neighbour country of India, the king of Bhutan decided 40 years ago, as its national goal to pursue, “Gross National Happiness”, rather than gross national product. Since then, Bhutan has been experimenting with an alternative, holistic approach to development that emphasises not only economic growth but also culture, mental health, compassion and community.
How to achieve happiness cannot be characterised by rapid urbanisation, mass media, global capitalism and environmental degradation. How can our economic life be reordered to recreate a sense of community, trust and environmental sustainability?
Some initial conclusions on a path to seek solutions to these questions are listed here:
1. We cannot denigrate the value of economic progress. Economic development that alleviates poverty creates a vital problem in
Topic - Economics of Happiness
Robert Kennedy, March 16, 1968
The Gross National Product (GNP) measures neither our wit, nor our courage, neither our wisdom nor our learning. GNP measures everything, in short, except that which makes life worthwhile.
We have certainly missed to have a proper look at these points in the past few decades of our relentless pursuit of economic growth. Despite the world's unprecedented wealth, there is vast insecurity, unrest and dissatisfaction. According to Prof. Jeffrey Sachs, the relentless pursuit of higher income is leading to unprecedented inequality and anxiety, rather than to greater happiness and life satisfaction. Economic progress is important and it can greatly improve the quality of life, but only if it is pursued in line with other goals.
In words of Prof. Simon Kuznets, 1962, an economist and the architect of the concept of GDP, “The welfare of a Nation can scarcely be inferred from a measurement of national income as defined by the GDP. Goals for more growth should specify of what and for what. What for whom is this growth for!”
Bhutan is a small neighbour country of India, the king of Bhutan decided 40 years ago, as its national goal to pursue, “Gross National Happiness”, rather than gross national product. Since then, Bhutan has been experimenting with an alternative, holistic approach to development that emphasises not only economic growth but also culture, mental health, compassion and community.
How to achieve happiness cannot be characterised by rapid urbanisation, mass media, global capitalism and environmental degradation. How can our economic life be reordered to recreate a sense of community, trust and environmental sustainability?
Some initial conclusions on a path to seek solutions to these questions are listed here:
1. We cannot denigrate the value of economic progress. Economic development that alleviates poverty creates a vital problem in