Sustainability and Well-Being: A Happy Synergy: April 2017
Sustainability and Well-Being: A Happy Synergy: April 2017
A GTI Essay
Introduction
To date, society has gauged the advance of human welfare by relying on poor
proxies such as income, employment, and GDP. However, the emerging science
of “happiness” is providing new tools that could revolutionize the measurement
of social progress. Emergent insights from this young field are already influencing
economics, psychology, health care, and urban planning, as well as the methods of
the national statistical agencies that guide policymaking. If adopted, the new metrics
could have far-reaching implications for transformational social change.
The sources of lasting These new insights support efforts toward a Great Transition in two key ways.
improvements in well- First, economic growth, which has served as a proxy for gains in well-being and
being are largely non- a palliative for social ills, has only an indirect and limited impact on well-being in
the long run, so there is no reason to pursue such growth directly. Second, the
material, and thus easy
sources of lasting improvements in well-being—such as trust, common cause, and
on the earth. compassion—are largely non-material, and thus easy on the earth. The delinking of
gains in well-being from economic growth creates an opportunity for an alliance
between advocates of economic justice and environmental protection, whose goals
have sometimes seemed in tension. We need not accept the message that painful
cuts to our quality of life are necessary in order to achieve sustainability. Indeed,
an optimistic, win-win message concerning society and environment is not only
compelling, but also essential for the large policy shifts necessary for building a
sustainable and flourishing civilization.
There are good reasons to approach the science of happiness with skepticism. Is
it possible to measure happiness in a reliable way, or to accurately compare one
person’s or one country’s happiness to another’s?1 Indeed, one could question the
wisdom of trying to design policies to improve human happiness in the first place.
However, it is worth noting that economists, who generally focus on behaviors
rather than opinions, and national statistical agencies, which primarily deal with
concrete and objective measures, have come to see the measurement of subjective
How is “happiness” defined and measured? The process begins with a survey that
asks something called the life satisfaction (LS) question: “Taking all things into
account, how satisfied are you with your life these days on a scale of zero to ten?”
Although this differs from inquiring about subjects’ momentary emotional state (how
“happy” they feel), the data gathered is informally referred to as “happiness.” Using
large data sets compiled from individuals’ answers to this question, along with other
pieces of economic and social information, statistical analysis can provide insight
into which kinds of people, communities, and nations are more or less satisfied with
The data on happiness their lives.
shout out an essential
truth: humans are social This analysis helps to quantify many things we already knew, such as that health
beings. and wealth and safety are important for well-being. However, it also reveals links
economists and policymakers have often overlooked, such as how important feeling
connected to others and having a sense of purpose are to well-being. Volunteering,
group activities, close relationships, trustworthy institutions, meaningful work, and a
shared sense of identity all matter deeply. Trust is of particular importance: societies
differ by levels of trust in family, neighbors, co-workers, bosses, police, government,
and business; greater trust in each case supports greater life satisfaction.
Above all, the data on happiness shout out an essential truth: humans are social
beings. Becoming unemployed is worse than losing income alone because of
the impact of the loss of a job on one’s identity, purpose, and relationships. We
are hard-wired to enjoy collaborating and doing good, but also to compare our
material situation to what we see around us and what we remember from the past.
Consumption and wealth, therefore, make us feel good in part to the extent that we
rank above others—making widespread consumption growth a zero-sum game in
which the relative gains of some are experienced as a loss for others.
While most people acknowledge that “money can’t buy happiness,” the relationship
between money and happiness is complex. Wealth may not be everything, but how
important is it?
However, if you can measure happiness directly, you no longer have to rely on such
assumptions. The measurement of subjective well-being came into economics
in part through the work of Richard Easterlin, who in the early 1970s discovered
what appeared to be a paradox. He found that while happiness was strongly
correlated with income within each country and varied widely across countries,
a country did not necessarily become any happier on average when it became
richer.7 Two reasons, both backed up by empirical data, help explain this seemingly
counterintuitive phenomenon. First, the satisfaction humans experience from
their material situation depends in part on what they have become accustomed
to. Second, and more important, satisfaction depends in part on what people see
around them, i.e., norms and standards. Terms such as “hedonic treadmill” apply to
the first reason; “keeping up with the Joneses” and “conspicuous consumption,” the
second.8
Satisfaction depends Both of these explanations for the “Easterlin paradox” describe aspects of a “rat race.”
For any given individual, increasing income, wealth, or material consumption may
in part on what people
look as though it will make life better, but if everyone does so, no one ends up any
see around them, i.e., better off in the long run. If an individual increases his work productivity and is able
norms and standards. to consume more, he will likely be happier, but countless people around him will
end up ever-so-slightly less happy. When everyone’s productivity and consumption
goes up, no one is happier. It may even be harder to please one’s future self with the
same things that were satisfying in the past. Everyone is running faster just to stay in
the same place.
However, not everything is zero-sum. Life satisfaction does not exhibit this “reference
dependence” (or, at least, not as strongly) when it is derived from social engagement,
a sense of belonging, trust, or health. If you improve your interpersonal relationships
with co-workers, build more trust in your neighborhood, or take up regular practice
of a team sport, you will be better off in the short and long term, and no one else will
be worse off as a result. Social capital of these sorts is a positive-sum good.
The pursuit of well-being, rather than income, provides a holistic and human-
centric way of responding to inequality. Ultimately, the most fundamental way to
support positive social identity, and thus enhanced well-being, is to ensure people’s
dignity. Comparing northern European societies to the US shows that a society can
provide or deny a sense of dignity to the poor, to workers, to prisoners, and to the
unfortunate even in the presence of disparities in wealth. Data show that rich and
The pursuit of well- poor alike are happier in societies that value all people first as humans and insist on
being provides a holistic the dignity of everyone.9 A happier future can accommodate modest differences in
and human-centric market income given that some occupations have higher economic productivity,
and some people may choose to spend more of their life in the market sector.
way of responding to However, such a society would place much greater emphasis on ensuring dignity for
inequality. everyone and fostering universal compassion as a basic social skill. Everyone would
be more content because even the privileged and wealthy suffer when they are
constantly judging others, mentally classifying people as different or oppositional, or
fearing for their own safety in others’ presence.
Focusing on respect and dignity offers a more proximate key to both social
sustainability and well-being. These values can be embodied in robust social
insurance systems that help build a sense of common cause and a recognition
of our shared vulnerability.10 Of course, social safety nets involve redistribution
of income, so it is no coincidence that the happiest societies (largely among
the Nordic countries) are also among those with the lowest levels of (post-tax)
income inequality. Redistribution, however, is only one part of the solution: actively
counteracting self-perpetuating stigmas is also necessary for a more universal sense
of dignity, inclusion, and compassion.
Focusing on preparing youngsters for a fulfilling life (with such skills as resilience,
compassion, and leadership) rather than simply preparing them for the job market
has profound implications for well-being and education. When the OECD ran
an experiment that emphasized non-academic social-emotional skills in school
teaching, the average self-reported life evaluation of students rose significantly
and stayed up a year later. Test scores increased as much as they did after the best
available academic interventions. Programs to foster such non-academic skills are
To foster positive social now being tested and rolled out throughout South Asia, Latin America, and Canada;
identity and reduce attendance, graduation rates, and physical health have all improved in response. In
some countries, like Denmark, which reports the highest adult life satisfaction in the
inequality, we must
world, such life skills are already standard teaching practice. Improved test scores
collectively invest more and career prospects make for a win-win situation, but the ultimate justification for
in children. pursuing them should be the lifelong subjective well-being of the students.
In general, if you want to know what the future will look like, take a look at the
investments being made today. To understand and shift the future social fabric, one
must start quite deliberately with investments in the young. Changing norms and
expectations of institutions is a long-term project. Shifting from a low-trust society
towards the Scandinavian model cannot be accomplished overnight, but requires
sustained and comprehensive effort over a generation or more.
If we care about the well-being of future generations, then we must guarantee them
a livable planet. But the well-being of future generations does not always enter our
everyday decision-making about our own well-being. Our efforts toward building
a happier society today will not alone ensure sustainability for tomorrow. Humans
have limited foresight and perspicacity when answering the life satisfaction question,
even though it encompasses, in principle, everything respondents know about their
lives—current, past, and future.
The fortuitous truth is that we can improve our lives, individually and collectively,
while simultaneously reducing our impact on the natural systems that support us.
To achieve the dual aim, we should measure what really matters to us, and others on
Earth, as directly as possible, and then let the results guide our actions.
Such a society, should it emerge, would advance the joint goals of well-being and
sustainability in two ways. First, without proprietary control over the production of
goods, firms would not have the incentive to manufacture demand for things. In
the current form of capitalism, advertising and demand creation can build a wedge
between our behavior and our well-being—i.e., they can guide us to make individual
choices that create a profit for others but are not actually in our own interest.12
Such activities will disappear to the extent that the consumer is also in charge of
production. Second, with less economic centralization, progress would focus more
on collaborative and pro-social efforts toward creativity and innovation. Fortuitously,
creative, pro-social, team-oriented, and collaborative behaviors strongly support
positive evaluations of work and life. In a further lucky twist, the jobs least subject to
automation would be those based on personal and pro-social interaction, because
such skills cannot be replicated by machines.
beginning of an
When goods can be freely shared and reproduced, policies can and should arise
explosion of wealth in to provide for those goods collectively. This would mean a bigger role in the future
collective assets. for cooperative, public institutions and endeavors. The literature on life satisfaction
suggests that we are hard-wired to benefit from intrinsic rewards, social rewards,
interpersonal interactions, and a sense of belonging, whether on the local level or
the global level, as has been fostered by technological shifts and global challenges.
With a reduced need for private capital, our institutions and the way we actually
spend our time are likely to be better aligned with the fundamental supports for
satisfying lives and with our natural human instincts for collaborative pro-social
undertakings.
Conclusion
Millions of people’s responses to life evaluation questions have shown that although
affluence is important to subjective well-being, much of that benefit may come
from collective resources—i.e., the ability of a society to provide public goods
that benefit everyone simultaneously. Chief among such public goods are the
opportunity to belong and to contribute, and a social environment that fosters
feelings of safety, trust, and autonomy. If we took subjective well-being as a guide
to policy, we would focus on the quality of jobs, not just income; on respect
and dignity rather than equality per se; on improving the social and emotional
environments of our children; and on educating for well-being and high social
functioning rather than primarily for academic aptitude and performance.
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