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V

irginia

C

apitol

C

onnections

, S

ummer

2015

6

Happiness as a measure of a nation’s

success is a proposition with a long history.

It was the Greek philosopher Aristotle,

the founder of the study of politics, who

first made the assertion that happiness

was man’s primary pursuit. According to

Aristotle it followed that happiness ought

to be the goal of the polis, a term Aristotle

used to identify the governing community

in which the people of his day lived. In

1776 over 2,000 years later, George

Mason reinforced this idea in Virginia’s

Declaration of the Rights of Man. Mason said the pursuit of

happiness was among man’s natural rights. That same year Thomas

Jefferson repeated this idea in the Declaration of Independence.

Coming at a formative time in our nation’s history, these statements

not only supported the importance of the nation-state ensuring the

happiness of its citizens, but also helped to reinforce this concept

as a core value in the collective consciousness of early America. As

a core value, it is appropriate that Americans regularly reflect on

the state of our individual and collective happiness and the extent

to which our government’s policies contribute or detract from

happiness. This is a prime focus of this paper.

The economic turmoil in the world today has been the genesis

of numerous examinations of happiness as a measure of a country’s

success and of those variables contributing to expressions of

happiness. The most mentioned reason given in early studies was

that a region’s relative wealth was the single biggest contributor

to the happiness of its residents. However, the results of recent

studies reveal that among economically developed societies there

is not a direct correlation between a nation’s wealth and the overall

happiness of its citizens. Many analysts who had formerly held to

the idea that a country’s measure of success was best found in stark

economic realities began asking to what extent are a people really

happy with the wealth represented in a nation’s Gross National

Product. Questions were invariably directed to the United States, a

nation that has the world’s highest GNP ranking, but is ranked only

15th among the happiest countries.

The quest for common denominator other than wealth that

contributes to societal happiness led researchers to search for

countries and regions that might serve as models. This search led

to the Scandinavian region and the countries of Denmark, Norway,

Sweden and Finland. The preponderance of socio-economic

analysts of Scandinavian societies believe that Scandinavian

countries are indeed unique in their overall sense of happiness.

They quote numerous well-respected surveys in support of their

conclusion. Furthermore, they are in agreement that much can be

learned from an examination of the key determinants supporting

the happiness of Scandinavian societies, but they disagree on what

these key determinants are.

Despite studies to the contrary, a number of observers of

Scandinavian countries still hold to the notion that happiness is

primarily linked to a country’s wealth. Other researchers in search of

an alternative explanation attribute happiness among Scandinavians

to the fact that they live in societies that are homogeneous with a

strong sense of identity and a common culture. Still others explain

Scandinavian expressions of happiness to the socialistic policies

of their governments’ economic programs. To varying degrees all

of the reasons given for the happiness of the Scandinavian people

have some merit and can be supported. They, however, fall short

as a consistent predictor of happy societies. There is, however,

Path To Societal Happiness:

Economic Equality and Populism

By Dr. William “Bill” Shendow

one indicator that can be shown to be a consistent contributor to

societal happiness. That indicator is economic equality.

Studies consistently show that economic equality within a

country makes for a comparatively happy citizenry. Inequality, on

the other hand, is a consistent inhibitor of happiness in societies.

There is a strong correlation between economic inequality and

a multitude of societal problems. This correlation is too strong

to be dismissed as a chance finding. Notable among those who

have studied differences between unequal and equal societies are

Professors Richard Wilkinson and Kate Pickett. They co-authored

The Spirit Level : Why Equality Is Better For Everyone

. Their

book was said to be groundbreaking for it put forward the idea

and supported its thesis with years of research and hard evidence

showing how societies are impacted positively by economic

equality.

Like many of their contemporaries, Wilkinson and Pickett’s

research led them to the Scandinavian countries. In Scandinavia

their research revealed societies that were both happy and

more economically equal than other well developed societies.

To determine the relative economic equality in Scandinavian

societies Wilkinson and Pickett relied on two measures. The first

measure used by Wilkinson and Pickett was the Gini coefficient

score. For each country this measure produces a number between

0, the completely economically equal society, and 100, a

country with a completely unequal distribution of wealth. The

Gini coefficient score for Scandinavian countries range from

a low of 25 (Sweden) to a high of 28.1 (Denmark). These low

scores support the conclusion that the distribution of wealth in

Scandinavian countries is significantly more equal than other

developed countries to include the United Kingdom at 36.1 and

the United States which at 40.8 was among the most unequal of

all advanced nations.

A second less sophisticated study used by the authors of

The

Spirit Level

relied on a measure that focuses on the income gap

between the 20% richest people and the 20% poorest people in

a society. This study produced a similar conclusion as the Gini

coefficient. Findings from this measure revealed that the four

Scandinavian countries were among the five countries having the

smallest income gap between the 20% richest and 20% poorest

people in their respective countries. Among the twenty-five

countries surveyed for this story, the income gap in the Unites

States was greater than all developed countries except Singapore.

Despite the difficulty in bringing about a more balanced

and equal economic system in the United States, it has been

accomplished in past. Ever since this nation’s founding period

whenever the economic system was seen as being out of balance

there have been political movements designed to restore a greater

degree of balance and equality. The modern history of these

movements can trace its origin to the populism movement of the

latter part of the 19th century. This movement was a reaction to

the Gilded Age, a time from the late 1860s to about 1896 that was

characterized by an economic system that benefitted the very rich

at the expense of the common man.

While the populism movement failed to elect its own leaders,

it did serve to influence others to take-up the cause of a more

balanced economic system. Those who were so influenced did so

under the label of a new movement, the progressivism movement.

Theodore Roosevelt was the most notable leader of this movement

at the dawn of the 20th century. Under his leadership numerous

policies were enacted which helped to establish greater economic

equality.