Oliver's Insights: The economics of happiness – why it’s been falling and what to do about it?

The key points are:

  • Despite rising in GDP per person over the last 20 years, surveyed measures of happiness have been flat to falling.

  • Key drivers are likely to be rising expectations, the rise of social media and falling housing affordability.

  • It may be driving the rise of extreme political parties.

  • Some suggest we are on an “hedonic treadmill” and want a broader policy focus on something like Gross National Happiness, but by suppressing individual freedom and achievement which could in turn depress happiness.

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