Happiness Policy and Economic Development

Abstract

Governments have paid great attention to the results of happiness research. In many countries, the object of government policy is no longer taken to be development in terms of raising GNP. Their focus has shifted to a National Index of Happiness. This paper analyses whether such an aggregate Happiness Index is a better guide to development than GNP or other indices of development. We argue that when the National Happiness Index becomes the official goal of policy, it will be distorted by political interests. The respondents to surveys will resort to strategically answering the questions posed. Even more importantly, the government in power will manipulate the Index in order to further its own interests. As a result, the National Happiness Index will lose its informational quality and will no longer serve as a measure of true happiness in the process of economic development.