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This lecture explores the relationship between economic growth and happiness, questioning the assumption that higher GDP leads to increased well-being. The instructor discusses Maslow's hierarchy of needs, the limitations of GDP as a measure of well-being, and the costs of economic growth such as environmental degradation and stress. The lecture also delves into the illusions of consumption, anxiety, fear, and inequality as factors influencing happiness. Additionally, the concept of 'capabilities' proposed by Amartya Sen is examined, highlighting the importance of freedom and well-being beyond material wealth.