Sunday, January 30, 2011

Quotes from ‘Happiness and economics’ - Economics discovers its feelings Dec 19th 2006

Happiness, as measured by national surveys, has hardly changed over 50 years. The rich are generally happier than the poor, but rich countries do not get happier as they get richer. The Japanese are much better off now than in 1950, but the proportion who say they are “very happy” has not budged. Americans too have remained much as Alexis de Tocqueville found them in the 19th century: “So many lucky men, restless in the midst of abundance.”

Lord Layard and Mr Frank both blame habit and rivalry for this stagnation of morale. People grow accustomed to what they have—however much of it there is. Moreover, having a lot of things is not enough if other people have more. A rising tide lifts all boats, but not all spirits.

To clamber up the pecking order, some people slave away nights and weekends at the office. They gain in rank at the expense of their free time. But in making that sacrifice they also hurt anyone else who shares their aspirations: they too must give up their weekends to keep up. Mr Frank reckons that many people would like to work less, if only others slackened off also. But such bargains cannot be struck unilaterally. On the contrary, people compete in costly “arms races”, knowing that if they do not work harder, they will lose their standing to someone who does.

These races are motivated by more than just prestige. As Fred Hirsch argued in his 1977 book, “The Social Limits to Growth”, many good things in life are “positional”. You can enjoy them only if others don't. Sometimes, a quick car, fine suit or attractive house is not enough. One must have the fastest car, finest suit or priciest house.

For many people, work is—as traditional economics assumes—just a way to pay the rent. But Carlyle is not the only one to see it as much more than that. In a string of experiments, Mihaly Csikszentmihalyi, of Claremont Graduate University, has handed out pagers to thousands of people who agreed to log their mood whenever prompted to do so. People were, unsurprisingly, at their happiest when eating, carousing or pottering around the garden. But some fortunate people also found deep satisfaction from losing themselves in their work: “forgetting themselves in a function”, as W.H. Auden put it.

It is easier to forget yourself in some functions than in others, of course. In Auden's poem, surgeons manage it “making a primary incision”, as do cooks, mixing their sauce, and clerks “completing a bill of lading”. This happy state, which Mr Csikszentmihalyi calls “flow”, arises most often in work that stretches a person without defeating him; work that provides “clear goals”,

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