Economic Growth and Happiness

This lecture explores the relationship between economic growth and happiness, focusing on the correlation between GDP and life satisfaction. It delves into the Easterlin Paradox, which highlights that while income correlates with happiness across countries, long-term GDP growth does not necessarily increase happiness. Various factors such as income inequality, environmental degradation, stress, and the illusion of consumption are discussed as reasons why happiness may not rise with GDP. The lecture also touches on Amartya Sen's concept of 'capabilities' and the importance of addressing poverty beyond just monetary wealth. Overall, it questions the necessity of continuous economic growth in high-income countries and emphasizes the need to consider factors beyond income for overall well-being.