Measuring Happiness as opposed to GDP

A much debated issue as well as part of most Macroeconomic specifications. Here is a bit of historical context to the debate. A few classroom discussion questions at the bottom.

Aristotle said "I count him braver who over comes his desires than him who conquers his enemies; for the hardest victory is over self." This might be a very
hard concept for A-level students to grapple with as they take notes on their ipads and look up statistics on their iphone and pursue all manner of consumerist ideals, but Aristotle has put forward an idea that is as prevalent, if not more so, in today's society, than it was nearly 2500 years ago. In those days it was a discouragement of giving into animalistic pleasures which can be compared to not giving in to an over-consumption of de-merit goods and mass consumerism in today’s society. Of course it was Buddha who famously coined the middle way, a path of moderation not giving into to all our desires and wants.

John Stuart Mill would argue that happiness comes behaving in society’s best interest not our own and that introduces his thoughts on Utilitarianism, “I have dwelt on this point as being part of a perfectly just conception of utility or happiness considered as the directive rule of human conduct. But it is by no means an indispensable condition to the acceptance of the utilitarian standard; for that standard is not the agent’s own greatest happiness, but the greatest amount of happiness altogether.”

Both Bentham and Mill have been credited with the idea of striving for “the greatest good for the greatest number.” Mill more theoretically and Bentham more quantifiably.

A more modern day critique is the pursuit of GDP ignores the happiness of the population. Robert F. Kennedy Jr., younger brother of President John F. Kennedy, said in 1968:

“Too much and too long, we seem to have surrendered community excellence and community values in the mere accumulation of material things. Our gross
national product ... if we should judge America by that - counts air pollution and cigarette advertising, and ambulances to clear our highways of carnage. It counts special locks for our doors and the jails for those who break them. It counts the destruction of our redwoods and the loss of our natural wonder in chaotic sprawl. It counts napalm and the cost of a nuclear warhead, and armoured cars for police who fight riots in our streets. It counts Whitman's rifle and Speck's knife, and the television programs which glorify violence in order to sell toys to our children.”

"Yet the gross national product does not allow for the health of our children, the quality of their education, or the joy of their play. It does not include the beauty of our poetry or the strength of our marriages; the intelligence of our public debate or the integrity of our public officials. It measures neither our wit nor our courage; neither our wisdom nor our learning; neither our compassion nor our devotion to our country; it measures everything, in short, except that which makes life worthwhile. And it tells us everything about America except why we are proud that we are Americans.”

This excellent critique of GNP, which still holds true 45 years on, could lead to a nice classroom discussion on what happiness is? How can we quantify happiness? Do Bentham’s quantitative methods to measure utility still work today? Should we measure Gross National Happiness as they do in the Kingdom of Bhutan?

What makes for a “happy society”? Good parks, schools, hospitals, do people need to be similar or varied in their thought process, plenty of discussion to be had here……