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Is there an economics of happiness?

  • The ultimate showman, P.T. Barnum,
proved to be the inspiration for Cynthia Wu’s current book
project. Photo: DOUGLAS LEVERE

Published: February 3, 2010

Have you been feeling down, lately? Who can blame you, really, with all the gloomy economic data out there. Just browse around USDebtClock.org, CostOfWar.com or WorldoMeters.info for a dose of data doom. Actually, it may not just be the data that’s bringing us down: A researcher has scientifically proven that the recently passed third Monday in January is always the unhappiest day of the year.

Truth be told, the “science” of the Blue Monday Theory is thin, but the study of happiness is receiving increasing attention by researchers, especially in economics, where recent books include such titles as "Happiness: A Revolution in Economics," “Happiness: The Science Behind Your Smile” and “Nudge: Improving Decisions about Health, Wealth & Happiness.” The UB Libraries have lots of them: click here for a list.

Despite the scholarly activity, there’s still no one-size-fits-all prescription for economic well being, as many factors play a role in happiness, among them commute time, length of work week, wage equality, job security and stress. What about good old-fashioned money? Well, economists hotly debate whether having more money really makes you happy. I’m not an economist, but I can confirm that a little more cash in my pocket would help me crack a smile.

Happiness might seem like an immeasurable metric, but that hasn’t stopped the happiness rankings from pouring in. The Street.com ranked all 50 states on happiness, with New York ranking surprisingly high at 14 (Nebraskans are the happiest campers in the country). Forbes ranked the world’s happiest cities, and San Francisco was the only top-10 American city (Rio de Janeiro topped the list).

Misery, which might be considered the opposite of happiness, also is used as an important economic measure. The Misery Index is a long-watched measure of economic activity that combines both unemployment and inflation. Moody’s recently updated the Misery Index to incorporate debt data, and apparently the rain falls everywhere in Spain, as it ranks as the most miserable country in the world; the US comes in as the 8th most miserable.

So, can we expect a happiness stimulus package here in the U.S.? I don’t think so. While happiness is probably good for the economy—happier workers are likely more productive—most agree (drug companies excluded) that there’s no undiscovered happiness pill out there. Besides, would you really want to rely on the government for a jolt of happiness? Probably best to just have a Coke and smile.

Charles Lyons, University Libraries