Post date: Jan 3, 2013 1:31:17 PM
Positive psychology and economics
Review
Published in 2005, this book is written from the perspective of an economics specialist and it argues that happiness ought to be an important measure of the success of policy in a civilised society. Layard examines the evidence from the new science of Positive Psychology as well as from other relevant fields including philosophy, neuroscience, sociology and economics. It makes for very interesting reading, and his ideas are important and influential in the UK, where he has been an advisor to Government, and a founder member of the movement www.actionforhappiness.org which promotes positive social change.
This book provides a thorough overview of current understandings of happiness and wellbeing, with a strong social policy perspective. It begins by exploring the meaning and measurement of human happiness, and the fact that evidence from Gallup shows that people in Western cultures were not happier as a result of being richer: we are constantly comparing ourselves to others who are better off. He identifies seven important areas for human happiness: family relationships; financial situation; work; community and friends; health; personal freedom; and personal values, and examines them in turn, concluding that 'Happiness is the ultimate goal because, unlike all other goals, it is self-evidently good' (p.113).
He concludes the book with a summary of his 'twelve truths about happiness' and his conclusions about what we should do, as a society. His eight key areas for action are a clear challenge to existing priorities.
Academic interest. Happiness is referenced extensively and thoroughly through both its notes pages, and an alphabetical list of reference sources. It is logically constructed and argued, and provides a strong challenge to our assumptions about judging a nation's achievements and success through measurements such as GDP.
Practitioners: Particularly relevant to those whose roles enable them to influence social policy, and those interested in politics. Elements within the book are relevant to managers, such as the discussion about the negative impact of performance related pay.
Self-helpers: This is not a self-help book, it is an academic text arguing the importance of happiness (and the reduction of misery) as the main goal of human society.
Best Bits
The book ends with a quote from Jeremy Bentham, written shortly before he died in 1830, from a letter he wrote to a friend's young daughter on her birthday, which summarises both his and Layard's ideology well:
'Create all the happiness you are able to create, remove all the misery you are able to remove. Every day will allow you to add something for the pleasure of others, or to diminish something of their pains. And for every grain of enjoyment you sow in the bosom of another, you shall find a harvest in your own bosom; while every sorrow which you pluck out for the thoughts and feelings of a fellow creature shall be replaced by beautiful peace and joy in the sanctuary of your soul.' (p.235-6)
Several key ideas emerge that challenge existing practices, some of which are well summarised by the key quotes that follow. The first are in response to the evidence of the way in which we compare ourselves to others, and seek to acquire more possessions:
So one secret of happiness is to ignore comparisons with people who are more successful than you are: always compare downwards, not upwards.' (p.47).
If we do not foresee that we get used to our material possessions, we shall overinvest in acquiring them, at the expense of our leisure.' (p.49)
Regarding the damaging long-term impact of unemployment, a situation we do not easily adapt to, Layard writes:
'..even when in work, people fear unemployment, and when unemployment goes up, it has a major impact on the happiness of everybody including those in work... So low and stable unemployment must be a major objective for any society' (p.68)
He also argues for more money to be spent to alleviate mental illness saying 'It is a scandal how little we spend on mental illness compared with, say, poverty' (p.183).
About the author
Lord Richard Layard is Emeritus Professor of economics, and founder (in 1990) of the Centre for Economic Performance at London School of Economics (LSE). He became a Labour Life Peer in 2000. His deep interest in happiness economics led to his becoming one of the founder members (along with Geoff Mulgan and Anthony Seldon) in 2010, of Action for Happiness, a UK movement for positive social change found at http://www.actionforhappiness.org/