Do Our Economic Choices Make Us Happy?

Abstract

Economic analysis of the relationship between income and happiness reveals a paradox: over the past 50 years rich countries have become much richer, though people are on average not happier. Within rich countries, the rich are much happier than the poor. However increases in income have not made either group any happier. There is clear evidence of diminishing marginal returns from increases in income, a consequence of both adaptation and social comparison. Many other factors are shown to affect well-being, once basic material needs are satisfied. In particular, the formation and fracture of high trust, close relationships have a more lasting impact on happiness than does income. The purpose of the Buddhist agenda is to stop suffering. Simple techniques are used to calm the mind and sharpen the awareness or attention. The various components of dependent origination can then be observed more objectively, in detail, and with increasing refinement. Another strand of Buddhist meditation cultivates positive mind-states. This is the stuff of mood control, by which one develops a positive attitude towards oneself and others, and a resilience to fluctuations in one’s own fortunes. These practices have the therapeutic benefit of promoting subjective well-being; at the deeper level of insight, they erode a concept of self which is bounded, independent and permanent.