Question

Study the current World Happiness index and discuss if there is any correction between GDP per capita & happiness.

Answer 1

If we study the current World Happiness index it shows that high GDP per capita does not immediately results to a higher happiness index. It indicates that the richer is not necessarily the happiest. Thus, besides income, there are other vital factors such as levels of peace and the degrees of corruption that contribute to people's happiness besides money. However nations that experience increase in GDP per capita also tend to experience happiness growth across waves in the World Value Survey. The rich nations tend to be happier than poorer countries; and similarly richer people within a nation tend to be happier than poorer people in the same nation.

If we look more closely at growth in GDP per capita in the US over the recent decades, one fact looms large: growth has not benefitted the majority of individuals. In U.S. the Income inequality is exceptionally high and has been on the increase in the last four decades, with median household income growing much more slowly compared to the incomes for the top 10%. Consequently, trends in aggregate life satisfaction should not be seen as paradoxical. The relationship between GDP and happiness displays that GDP is not the only the significant thing in determining government policy, governments must consider all other aspects to enhance the well-beings of their citizens