Question

How important is GDP—and our level of GDP per capita—to happiness and satisfaction?

Answer 1

GDP plays a very important role in improving a countries standard of living, a country is supposed to be rich if its GDP goes on increasing. Per capita GDP is considered to be one of the core values for economic development. If per capita GDP is large and distributed equally it leads to more happiness and satisfaction as more percentage of people are able to afford goods and services, more GDP leads to more material wealth which is directly related to happiness and wealth. GDP in essence plays a central role in happiness index as consumption drives the economy, the more one spends, more his happiness based on material things increases thus it plays a pivotal role. However as per capita income reaches a very high level and does not increase that much thereafter, happiness and satisfaction level seems to fall as people soon take money for granted and seek other things such as relationships.