Need for Economic Growth: GDP and Happiness

This lecture explores the relationship between economic growth, GDP, and happiness. It discusses the reasons for economic growth, such as social stability, financial stability, full employment, and reducing inequality. The lecture presents data showing that life satisfaction does not necessarily correlate with GDP, as some high-income countries have high life satisfaction levels. It also delves into the Easterlin Paradox, which highlights that while income is correlated with happiness across countries, long-term GDP growth does not necessarily lead to increased happiness. The lecture further examines the concept of income satiation points, where life satisfaction stops rising with increasing income levels. It also touches on the impact of income inequality on quality of life among rich countries.