The Economics of Happiness

1. Dinners HOW TO MAKE with the Reader The Economics of Happiness #3 A woollen coat www.theseymourreader.com

2. Ed Diener Martin Seligman

3. Scientists can measure people’s happiness. We finally can do it Happiness is the goal of public policy. We’ve always meant to do it Therefore, happiness should be a primary policy focus. So let’s do it!

4. The big idea Unified, comprehensive science of happiness Policies to increase public happiness

5. The Philosophy of Happiness Scientists can measure people’s happiness. Happiness is the goal of public policy. Therefore, happiness should be a primary policy focus.

6. The Psychology of Happiness Scientists can measure people’s happiness. Happiness is the goal of public policy. Therefore, happiness should be a primary policy focus.

7. The Economics of Happiness Scientists can measure people’s happiness. Happiness is the goal of public policy. Therefore, happiness should be a primary policy focus.

8. What does economics promise? The Economics of Happiness What does economics deliver? What can policy deliver?

9. What does economics promise?

10. What does economics promise? Adam Smith1723-1790 1776

11. RICH POOR WEALTH RICH HERE THERE

12. RICH POOR WEALTH RICH HERE THERE

13. RICH POOR WEALTH RICH NOW THEN HERE THERE

14. What makes this possible? POOR WEALTH RICH NOW THEN HERE THERE

15. Stuff that might meet our needs LABOUR Stuff that does meet our needs

16. DIVIDING LABOUR makes it more productive

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19. SMITH’S PIN FACTORY 4,800 PINS PER WORKER!

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21. SMITH’S PIN FACTORY 48,000 PINS PER DAY!

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23. DIVIDING LABOUR makes it more productive EXCHANGE enables us to divide labour

24. Autarky

25. Exchange

26. Exchange A way to get what you want

27. Exchange A reason to make more & better

28. Exchange A reason to make what others want

29. DIVIDING LABOUR makes it more productive EXCHANGE enables us to divide labour MARKET SIZE amplifies division of labour

32. The “Hundred-Mile Suit” 500 hours 1.5 years

33. The “Hundred-Mile Suit” 500 hours 1.5 years

35. Stuff that might meet our needs LABOUR Stuff that does meet our needs

36. Stuff that might meet our needs EXCHANGE enables us to divide labour The division of labor Stuff that does meet our needs The propensity to exchange

37. Stuff that might meet our needs DIVIDING LABOUR makes it more productive Productive powers The division of labor Stuff that does meet our needs The propensity to exchange

38. Stuff that might meet our needs MARKET SIZE amplifies division of labour Productive powers The division of labor EXTENT OF THE MARKET Stuff that does meet our needs The propensity to exchange

39. Stuff that might meet our needs Greater outputs LABOUR Fewer inputs Stuff that does meet our needs

40. HAPPINESS IS … making good use of your time Greater outputs Fewer inputs WEALTH IS … making your own use of your time

41. OPPORTUNITIES NOT GUARANTEES What does economics promise? What does economics deliver? What can policy deliver?

42. OPPORTUNITIES NOT GUARANTEES What does economics promise? What does economics deliver? What can policy deliver?

43. Gains in wealth should correlate with gains in happiness What does economics promise? OPPORTUNITIES NOT GUARANTEES Any such correlation should not be extremely tight

44. Not much.

45. GDP level & happiness? GDP growth & happiness?

46. Easterlin Sacks Stevenson Wolfers MORE TIME 2010s 2000s 1970s 1990s 1960s 1980s MORE PLACES Happiness data collection begins

47. 1 Within a country, richer people report greater well-being than poorer people.

48. 1

49. 2 Richer countries have higher per capita well-being than poorer countries.

50. GDP level & happiness 2