Is GDP an Accurate Gauge of Individual Citizen's Happiness?

There are several examples of countries with high GDP but low levels of individual happiness. This demonstrates that GDP is not a reliable measure of personal well-being. Why is this the case? Because in a system where individuals feel constrained, unhappy, and forced to work long hours like slaves, their happiness levels tend to be low. People often deceive themselves into believing they are happy, but they lack a clear understanding of what true happiness entails.

True happiness is not about working most of the time. It is an internal state that is deeply connected to our social and natural surroundings—a harmonious connection with everyone and everything. Therefore, GDP fails to accurately reflect individuals' happiness.

If we wish to increase our happiness, it is wise to reconsider our current approach to happiness and focus on achieving a harmonious connection with others in society and with nature. This perspective is inspired by KabTV’s “Conversations” with Kabbalist Dr. Michael Laitman, held on June 9, 2021.

Money and Happiness: A Misleading Relationship

At first glance, the question of whether money brings happiness may appear rhetorical. However, today's evidence suggests the opposite. When we chase wealth, accumulating material possessions, we often become increasingly unhappy, depressed, and even turn to substance abuse and meaningless activities as a form of escape. Our pursuit of wealth can lead us into a state of oblivion.

Of course, we need enough resources to meet our modern necessities and maintain our physical and mental health. However, beyond a certain point, material wealth does not necessarily translate to happiness. It is important to recognize that having enough resources to meet one's basic needs is crucial, but it is not the sole determinant of happiness. Life satisfaction can be undermined by an imbalanced focus on materialism.

The Disconnection Between GDP and Happiness

A country's GDP has a minimal relation to its citizens' overall well-being and happiness. In many cases, especially in countries with uneven wealth distribution, a high GDP does not equate to high individual happiness. GDP primarily measures economic output and overall national wealth. While a very low GDP per capita can indicate low individual happiness, a high GDP per capita does not necessarily indicate high individual happiness.

Studies suggest that an equal distribution of wealth among citizens, as measured by the Gini coefficient, is a better indicator of individual happiness. A high Gini coefficient indicates significant income inequality, which can lead to increased social tensions, decreased trust, and reduced overall happiness levels among citizens. Conversely, a low Gini coefficient suggests a more equitable distribution of resources, which can contribute to higher levels of satisfaction and happiness among individuals.

In conclusion, while GDP can provide valuable insights into a nation's economic performance, it falls short as a comprehensive measure of individual happiness. A more holistic approach that considers factors such as social connectedness, environmental harmony, and equitable wealth distribution can offer a more accurate and meaningful assessment of individual well-being.