Economic growth and happiness: examining the relationship between material progress and wellbeing

Economic Growth and Happiness

Economic Growth Can Lead to Healthier and Happier Societies

More Availability of Goods

Higher Income

Increase in Tax Revenues and Better Welfare Programs.

Increase in Purchasing Power

Technological Advancement

Health Industry Benefits

Business Sector Benefits

General Benefits

Reflective statement

Economic Growth Can Lead To Healthier and Happier Societies

Economic growth has long been termed as the precursor to any society's success, and in this paper, we shall be looking at various aspects of economic growth that are directly correlated to happiness in the society, as well as those that negate this causality leading us to wonder whether all the technological progress in the world can eventually lead to happiness.

There are various factors that impact happiness where geography is a consideration in the sense of the location of a country has an important part to play in terms of its cultural values, and the manner in which happiness is defined in the culture. The progress that the country has made in terms of the economic bloc it belongs to as the U.K. has being part of the EU; its history also plays an important part in how happiness is defined. (Megan, 2009) Consider that U.K. is one of the most advanced nations of the world and its economy is among the most progressed, therefore their criteria of h happiness includes towards a better, healthier environment; whereas, countries that are emerging keep economic empowerment as their premise for happiness.

Similarly there are variables that are indicative of economic growth are: higher availability of goods, higher income, and technological advancements, each of which are discussed in further detail below:

Higher Income

Higher income is part of the HDI index that measures the progress of the society not only in economic terms but also in terms of the quality of life, including access to basic facilities as well as literacy among other things.

But the fact is that income is the easiest element among all to measure, being numeric in nature by the character of its being. Higher income has been seen to be the hallmark of developed societies where an increase in the average per capita income is seen to be a sign of success for economic policies. However, this aggregation looses out on important elements pertaining to the constituent parts.

Higher income, although a good indicator on the outset, fails to regard whether this higher income in the economy has trickled down to the poorest strata of the population, or if it has just served to increase the treasures of the elite class a little more. It does not take into account the distribution of wealth in an economy, as indicated by a larger number in the middle class. Rather it simply averages out income, smoothing away indicative wrinkles.

There are several implications of higher income, some of which are as follows:

Increase in Tax Revenues and Better Welfare Programs.

When there is higher income, government also earns more in terms of higher tax revenues and in turn is able to provide better for the population. This includes welfare expenditure such as unemployment benefits, provision of homes, availability of free health and education programs and so forth. These provisions mean that there is a better distribution of wealth and that poor people are able to avail basic life facilities on the back of higher taxes paid by the top echelon of the society.

Moreover better tax revenues also mean better infrastructure and amenities that are provided by the government to better lives of people all over the country. But this contentment with the provision given by the government might not mean happiness. It just might mean the ability of the poor people to survive for a little more time on aid doled out by some reluctant individuals and corporations that are always on the lookout for tax savings.

Increase in Purchasing Power

This in turn leads the population to be able to exert more control over its life and be able to access the goods and services that they need to in order to be happy. If people have the income they can fulfill their material desires as well as access better healthcare facilities in order to improve the standard of life.

Technological Advancement

Technological advancements have been an important part of progress, where more advancement in technology generally is taken to indicate better lives. This technological advancement impacts many spheres of life including the health sector, the business sector as well as life in general.

Health Industry Benefits

The health industry has progressed greatly due to advancements in technology which have enables better treatments and medications as well as cures for diseases that were previously unknown. Some examples include better facilities at hospital, better machines, more options for treatment etc. moreover, as far as happiness is concerned, people who are infertile and want children, the greatest source of happiness for a majority of the population, there are various methods to treat the common problem of infertility.

Moreover lifesaving drugs and procedures have become more advanced so that mere detection in early stages can often lead to better and improved lives.

Business Sector Benefits

Advancements in computing and it have meant that businesses can now function much better. areas such as supply chain and management have advanced greatly on the back of technologies that enable the possibility of strategic alliances with partners located anywhere in the world, along with enabling technologies that help an enterprise operate under ideal structures such as Just-in- Time inventory.

This leap has lead to happiness in work, as most of the tedious and repetitive work has been taken over by computers leaving people to do work that are more suitable to their caliber of cognition and thought.

General Benefits

Other benefits include the ability of people to remain in touch with the family and friends located far away via social media, as well as the ability and freedom to express them and let the world know about their situation. The Arab Spring was one such event which truly made the world realize the power of this technology.

Conclusion

While it can be said that economic growth in terms of more choices, higher income and technological advancement leads to easier ways of life, and a better standard of living, there are indications that these might not lead to happiness which defined in terms of the Bhutanese government include spirituality, care for the environment, and in its wake, more contentment, rather than a hungry drive to capture as much of the world's resources as possible, as is the case with other countries. (Fribbance, 2009)

Happiness might be a subjective factor, but it is important as it is the goal of all individuals, therefore the ultimate goal of economic progress too is happiness.

Reflective statement

The assignment helped me put the concept of economic growth into perspective. As students of social science and economics, much of the rhetoric is about achieving the macroeconomic concept of economic growth. However this macro variable influences each and every one of our individual lives, and where it is a broad characteristic, it also is a micro concern.