Dominic Lawson: Does more money make us happier? Of course it does

If your policy is one of austerity it is advisable to use something other than economic growth as a measure of your success

Share
Related Topics

A pocket cartoonist, when on form, can achieve more with a single sketch than the contents of a thousand weighty editorials. Thus, Pugh in yesterday's Daily Mail brilliantly encapsulated the eternal dispute about the exact connection between money and happiness: a doctor is telling his patient, "If the Prozac doesn't work, I'd like you to take this £5 note."

This was the artist's distillation of a 250-page report by a dozen academics, published by the Institute of Economic Affairs, ("...And the pursuit of happiness: Well-being and the Role of Government") which seeks to debunk the Coalition's adoption of a General Wellbeing Index to supplement or even replace Gross Domestic Product as a measure of its success.

The IEA chose yesterday as its launch because it knew that newspapers for the past few years have been in the habit of publishing stories based on the notion that the third Monday in January is the "most depressing day of the year". This all stems from the work of Cliff Arnall, a self-styled "happiness guru", who in 2005 produced pseudo-scientific gobbledegook purporting to prove that this would always be the day of maximum misery for Britons. No matter that two years ago Arnall admitted his theory was "not particularly helpful": while it certainly does us no benefit to be told we should be feeling gloomy, it's an ill wind that blows nobody any good. Yesterday, one newspaper used the bogus Blue Monday to plug the wares of a company which offers "light therapy... to help beat the blues"; and the IEA, as noted, has found it useful as a means of drawing attention to its counterblast against David Cameron's "happiness agenda".

Those who follow such matters will recall that last year, on orders from 10 Downing Street, the Office for National Statistics launched a survey, asking hundreds of thousands of families "how happy they are" – and other related questions. This was all in furtherance of Cameron's 'happiness agenda', following on from a speech he made in 2010 invoking Robert Kennedy's remark that "Gross Domestic Product measures everything... except that which makes life worthwhile" and his earlier claim that as Prime Minister he would focus on "GWB [General Wellbeing] rather than GDP".

There are at least two distinct reasons why the Conservative leader is pursuing this agenda (aside from the possibility, odd as it might seem, that he genuinely believes in it). The first is that if your policy is one of retrenchment and austerity, it is advisable to come up with something other than economic growth as a measure of your success. The second is that Cameron has always sought to "decontaminate the Tory brand association" with the idea that it is dedicated only to personal enrichment. What better way to emphasise that than by associating the party with touchy-feely happiness gurus, rather than with free-market think-tanks... such as the IEA.

As Philip Booth, the co-ordinator of the IEA's ideological fight back against Cameron's tidal wave of sentiment, points out, the Prime Minister attacks a straw man by stating that previous governments had been solely concerned with economic growth: "If that were the case, we would have had much more liberal planning laws."

The value of GDP as a measure of achievement (whether or not credited to government rather than the private sector which actually generates the income the state redistributes according to its own interpretation of the popular will) is precisely that it is measurable. Ever since Jeremy Bentham in the 18th century constructed his "felicific calculus", with its components of "intensity, duration, certainty, propinquity, fecundity, purity and extent", it has been clear the measurement of happiness is a doomed venture: what we call happiness – itself a challenge – is not something that can be converted into numbers or units.

It is also not as self-evident, as most people now seem to suppose, that individual happiness is the most important thing in the world. Dr Martin Seligman, a pioneer of "positive psychology", has recently acknowledged this, denouncing what he terms "happy-ology" and concluding that: "What humans want is not just happiness... if that were all people were interested in, we should have been extinguished a long time ago."

While the Daily Mirror, eternal critic of anything emanating from the Conservative Party, is hardly unbiased, it is right to characterise the Prime Minister's happiness index – complete with nationwide surveys – as a "potty waste of money". It cited this response from one of its readers to the Office for National Statistics' question "What would make you happier?": "Better quality pies and chip butties... cheese and tomato toasties with ketchup on the side, white bread. Bacon sandwiches, actually sandwiches in general."

To the extent that there is an interesting political argument to be had in this point at which economics collides with psychology, it lies in the attempts by some on the left to demonstrate that high levels of income inequality lead to the greater unhappiness of the greatest number and that, therefore, to the extent that government gets involved, it should act more to reduce those inequalities, chiefly through fiscal measures. (Of course, it already does so, with a "progressive" tax policy, under which many millions are net recipients of tax credits while, at the top, the highest earners are required to forgo half of their gross income.)

The fashionable argument that inequality foments unhappiness is, however, bedevilled by a lack of rigour in terminology. As Professor Paul Ormerod points out in his contribution to the IEA's book, there is a distinction between the general inequality that exists between the richest and poorest in a nation, and the relative inequality between individuals living in close proximity to each other. The former has gained the greatest attention as an alleged cause of unhappiness, but it is the latter which is more significant in real life, or as Ormerod puts it: "Relative income involves jealous glances over the garden fence, while income inequality requires envy of the distant rich." If it is true, as Ormerod argues, that the former is a much more potent source of misery, what is government to do about that? Nothing at all, I would argue, except perhaps to say that jealousy of the next door neighbour's bigger garden is most unattractive.

As for the perennial question of whether more money makes people happier, one can't beat the nine-word summary of professors Blanchflower and Oswald: "Money buys happiness. People also care about relative income."

d.lawson@independent.co.uk

React Now

  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
iJobs Job Widget
iJobs General

Recruitment Genius: Sales Manager

£35000 - £45000 per annum: Recruitment Genius: This is a unique opportunity to...

Recruitment Genius: Trainee Manager - Production

Negotiable: Recruitment Genius: Trainee Managers are required to join the UK's...

Recruitment Genius: Telesales Manager

£25000 - £35000 per annum: Recruitment Genius: You will maximise the effective...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + uncapped commission : SThree: Hello! I know most ...

Day In a Page

Read Next
A picture posted by Lubitz to Facebook in February 2013  

Andreas Lubitz: Knee-jerk reaction to 9/11 enabled mass murder

Simon Calder
The Archbishop of Canterbury, the Most Rev Justin Welby, presides at the reinterment of Richard III yesterday  

Richard III: We Leicester folk have one question: how much did it all cost?

Sean O’Grady
The saffron censorship that governs India: Why national pride and religious sentiment trump freedom of expression

The saffron censorship that governs India

Zareer Masani reveals why national pride and religious sentiment trump freedom of expression
Prince Charles' 'black spider' letters to be published 'within weeks'

Prince Charles' 'black spider' letters to be published 'within weeks'

Supreme Court rules Dominic Grieve's ministerial veto was invalid
Distressed Zayn Malik fans are cutting themselves - how did fandom get so dark?

How did fandom get so dark?

Grief over Zayn Malik's exit from One Direction seemed amusing until stories of mass 'cutting' emerged. Experts tell Gillian Orr the distress is real, and the girls need support
The galaxy collisions that shed light on unseen parallel Universe

The cosmic collisions that have shed light on unseen parallel Universe

Dark matter study gives scientists insight into mystery of space
The Swedes are adding a gender-neutral pronoun to their dictionary

Swedes introduce gender-neutral pronoun

Why, asks Simon Usborne, must English still struggle awkwardly with the likes of 's/he' and 'they'?
Disney's mega money-making formula: 'Human' remakes of cartoon classics are part of a lucrative, long-term creative plan

Disney's mega money-making formula

'Human' remakes of cartoon classics are part of a lucrative, long-term creative plan
Lobster has gone mainstream with supermarket bargains for £10 or less - but is it any good?

Lobster has gone mainstream

Anthea Gerrie, raised on meaty specimens from the waters around Maine, reveals how to cook up an affordable feast
Easter 2015: 14 best decorations

14 best Easter decorations

Get into the Easter spirit with our pick of accessories, ornaments and tableware
Paul Scholes column: Gareth Bale would be a perfect fit at Manchester United and could turn them into serious title contenders next season

Paul Scholes column

Gareth Bale would be a perfect fit at Manchester United and could turn them into serious title contenders next season
Inside the Kansas greenhouses where Monsanto is 'playing God' with the future of the planet

The future of GM

The greenhouses where Monsanto 'plays God' with the future of the planet
Britain's mild winters could be numbered: why global warming is leaving UK chillier

Britain's mild winters could be numbered

Gulf Stream is slowing down faster than ever, scientists say
Government gives £250,000 to Independent appeal

Government gives £250,000 to Independent appeal

Donation brings total raised by Homeless Veterans campaign to at least £1.25m
Oh dear, the most borrowed book at Bank of England library doesn't inspire confidence

The most borrowed book at Bank of England library? Oh dear

The book's fifth edition is used for Edexcel exams
Cowslips vs honeysuckle: The hunt for the UK’s favourite wildflower

Cowslips vs honeysuckle

It's the hunt for UK’s favourite wildflower
Child abuse scandal: Did a botched blackmail attempt by South African intelligence help Cyril Smith escape justice?

Did a botched blackmail attempt help Cyril Smith escape justice?

A fresh twist reveals the Liberal MP was targeted by the notorious South African intelligence agency Boss