Do countries that are already rich become even happier when they become yet richer? This was the essential question on which I entered a gentleman’s bet in 2004 with Andrew Leigh and which just recently got settled.
The reason for the bet was a famous hypothesis in happiness research called the Easterlin hypothesis which held that happiness did not increase when rich countries became even richer. In my ‘Fred Gruen’ presentation on this matter in 2004 I used the following graph to illustrate the happiness income relation across countries:
This graph shows you the relation between average income (GDP in purchasing power terms) and average happiness on a 0-10 scales for many countries. As one can see, the relation between income and happiness is upward sloping for low levels of income, but becomes somewhat flat after 15,000 dollars per person. I championed the idea that this was not just true if you looked across countries, but that this would also hold true over time.
Andrew Leigh’s thinking was influenced by other data, particularly a paper by Stevenson and Wolfers which – he thinks debunks the Easterlin hypothesis. Here’s one of their graphs: Continue reading →
This piece is inspired by Paul Frijters’ post titled The Benefits of Being Dumb in Politics. I don’t actually think it is possible meaningfully/reliably to distinguish between politicians who are “really smart and great actors as well, who thus have no problems with telling outright lies and with backstabbing” and those autistic egomaniacs who “are sincere because they truly do not see the inconsistencies and selfishness in their own actions and those of others”.
11. KP: In fact political discourse (and indeed human discourse in general) is a complex, interwoven continuum of truth, lies and self-deception. I suspect that the most common mix in the political arena is that the politician calculatedly oversimplifies her own position and skates over its deficiencies, while equally deliberately demonising and exaggerating the shortcomings of her opponent. Nevertheless, she fundamentally and sincerely believes (rightly or wrongly) that her own position is markedly superior to that of her opponent. She accepts that effective communication with a mass audience of largely disengaged voters inhibits the conveying of nuance and complexity. [↩]Paul’s own attempted assignment of various particular politicians to each category appears to me to be at best arbitrary. How could one possibly reliably distinguish between the two categories without being able to read the politician’s mind? After three hours of interviews with Kerry O’Brien I still can’t really tell where Paul Keating is engaging in calculated bullshit and where he is deluding himself.
Nevertheless, the musings of both Pauls give rise to some important points. Not even the most intelligent and well-educated of us is as reliably reflective, analytical and rational as we like to imagine. All of us unavoidably make frequent use of heuristics in decision-making; all of us frequently exhibit cognitive phenomena like confirmation bias; and all of us mostly make moral judgements by a process that clinical psychologist Jonathan Haidt christened social intuitionism.
Moreover, there is cogent evidence that Paul Frijters’ somewhat uncharitable labelling of autistic egomaniac politicians actually identifies a widespread and perhaps even universal cognitive phenomenon, certainly one that is not confined to politicians. As far as I know, the phenomenon was first labelled as a politico-literary trope by George Orwell in Animal Farm 1984. He called it doublethink:
Some memories fade too slowly. I was reminded of one such memory by the TV advertisement being aired in the lead up to White Ribbon Day tomorrow (Monday 25 November).
It was late morning on Friday, 20 September and I was at the local Magistrate’s Court on a court visit for the first assignment in my B Laws course. The court co-ordinator told me that there was only one criminal contest – that is, a trial – on that day, in Court 2. A case of recklessly causing injury.
It sounded amusing – most likely the result of a couple of bogans going the biff in the car-park of one of the areas many 1960s vintage beer barns. I went to court room expecting an hour or so of light entertainment at the expense of a boof-head who’d fallen foul of the law. More fool me.
When I entered the courtroom and sat myself down in the seat nearest the door – in the back row of three rows of public seating – there seemed to be a distinct shortage of bogans. Unless you counted the besuited guy in the middle of the second row with the wing of a tattooed bird poking out of his shirt collar.
It was late morning so I’d missed the start of proceedings. The witness box was occupied by a doctor giving testimony on the injuries suffered by the victim of the assault that led to the trial. I identified her as the woman sitting in the front row, directly in front of me. An attractive woman in her late twenties, well-dressed, sitting between an older man and woman who, I surmised, were her parents.
How do health and wellbeing correlate, and how do they correlate across countries? No problem, check out this interesting graph which I found in this OECD report on wellbeing through the crisis. I wonder how New Zealand does it – all that equity of health outcomes? Perhaps it’s some statistical artefact, but if not, it would be good to know how they do it.
Here’s another cool graph which maps life satisfaction against educational level and shows that we’ve got it all sorted in Australia with everyone having a pretty good time. In Sweden and Ireland you’re happier if you’re uneducated.
Its kind of intriguing how people are managing to nurse along the old concern with ensuring that we measure wellbeing not just GDP. I agree, but not with the fervour of many
The global economic crisis has had a profound impact on people’s well-being, reaching far beyond the loss of jobs and income, and affecting citizens’ satisfaction with their lives and their trust in governments, according to a new OECD report.others. They’re very closely correlated on most reasonable measures of wellbeing. But the OECD’s ‘messaging’ is up to ‘nuancing’ that particular fact.
How’s Life? finds that subjective well-being deteriorated in countries most affected by the crisis. . . .
“This report is a wake-up call to us all,” said OECD Secretary-General Angel Gurría. “It is a reminder that the central purpose of economic policies is to improve people’s lives. We need to rethink how to place people’s needs at the heart of policy-making”.
I am a little concerned to deduce from this that the Secretary-General was asleep. But looking on the bright side, it is certainly good news that has woken up. Will he be able to wake up others deep in their slumber? Will there be time?
I love accents. I love pretty much everything about them. I love the way in which they actually convey things – sincerity, guile, sneering, superiority and their opposites and complements – all surreptitiously; all in a way that is at the same time so compelling to our intuition as to be obvious to all, and yet so subtle as to go entirely under the radar of the rational. Why should the Cockney accent sound cheeky to the point of criminality, the word “gov’nor” a study in irony making it anything from a mark of respect to a comprehensive put down? Why should an ocker accent imply the matey slapdash sensibility that it does. It doesn’t seem to me to be any more possible to answer those questions than it is to figure out why Samuel Barber’s Adagio for Strings is so sad while the first movement of Beethoven’s 6th Symphony is so peaceful and lovely.
It was around six thirty on a cold wet Melbourne Day. A long day for me, including a mid-morning appointment with a new psychologist. First appointments are all about background – what your condition is, personal and family history and all that other stuff that they need to know to get a useful idea of who you are and where you came from.
So I spent near an hour giving her the $100 tour of my dark places – even, for the sake of expediency, a quick glimpse of the very darkest one which I’ve rarely revealed to friends because they’re entitled to their faith in human nature. Or something like that: it’s a distressing little story to tell and it distresses people who hear it.
One type of news item I notice often – because it confirms a belief that I like to maintain – reports that a recent psychological study has found that the most effective way to give yourself a quick happiness fix is to do someone else a favour. The most recent I remember reported, for example, that while visiting a favourite place might lift you out of the glums, doing someone a favour was more likely to do it. So when I visited a local coffee shop that offered ‘delayed coffee’ recently I made a point of buying one.
A ‘delayed coffee’ is a cup of coffee that you buy for a complete stranger. You pay for the coffee and at some later time someone else who’s stuck for the price of a coffee can come in and get one free of charge.