The Forum > Article Comments > Don't worry, we're happy > Comments
Don't worry, we're happy : Comments
By Cassandra Wilkinson, published 23/5/2007Despite the best efforts of anti-affluence commentators, Australia is not suffering a sadness epidemic.
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JohnJ - some interesting points. Some questions:
If inequality causes unhappiness and inequality is rising, why do surveys not point to rising unhappiness?
Inequality of what? -
– Isee two key differences between the survey you cite and the ABS data I quote – firstly, time period (the Leigh survey covered a longer timeframe but was a little less up-to-date than the ABS), and secondly, the thing being measured. The ABS “equivalises” gross income for the effects of taxes, benefits etc. In general, recent years showed a trend of increasing inequality of own-source income that was offset by progressivity of the tax a benefit system to mean that effective disposable incomes of those on low incomes actually grew faster than average. But if subjective well-being depends on the status implied by absolute earnings, not the utility of what can be consumed, progressive taxes and benefits paradoxically might not make much different to we welfare of the relatively poor.
Relative to whom –
Am I going to become more unhappy because James Packer stack on a few more millions, or because I can’t afford a flat-screen TV like my next-door neighbour. I’d guess my comparators will be people somewhat like me. If so, the growing incomes of the superrich won’t bother me very much
What is the source of the unhappiness -
Is ranking or magnitude the key determinant – if our concern is with relative status rather than the absolute utility of consuming more, then I’d expect that status ranking rather than the magnitude of the gap to between comparators is the key issue (look at the intense rivalry between schoolkids over trivial points of difference). If so, unless we have exact equality then reducing the degree of inequality will not improve happiness very much.
Does it matter?
Life is not a contest against other people. The tenth commandment warns us against covetousness. If some people are discontented because they have less than others, should this concern us greatly?