DEC 4

26: DEC 4 - Happiness as a Social Pursuit

Assigned

• Gallbraith, “Dependency Effect” (6)
• Harvard Business Review, "The Economics of Well-Being" [1]
• Bruni, "Why GDP is not enough"

Galbraith, Dependency Effect

• Problem of intertemporal comparison: Who's to say that status pleasures aren't as important to us now as basic satisfactions were to our poor predecessors? It is repugnant to think that desires never lose their urgence, but maybe that's the case.

• Flaw in the view of someone who accepts this case: If our desires and wants are "contrived by the process of production", they are not original with us and therefore can't be "urgent" for us. The whole case for accommodating business production (through infrastructure, tax breaks, etc.) falls apart if the production system is creating the needs.

• Develops his view in Section 2: Not against consumer wants, but little doubt that many are contrived. Cites Keynes on insatiability of status needs. "the desire to get superior goods takes on a life of its own" "The urge to consume is fathered by the value system which emphaasizes the abilityt of the society to produce." (GDP)

• Section 3: advertising and salesmanship (no social media yet). It's a problem if the producer makes the goods and the desire for the goods. Note that is calling into question the idea that the consumer is really autonomous. "independently determined wants"

• Read Section 4.

Bruni & Zamagni, Chapter 6: Why GDP is not enough?

• Thesis: We need additional measures of well-being to add to or replace our reliance on GDP. Analogy of multi-stage cycling races: There are many things to compete for in addition winning the overall race. GDP is just the sprinter's jersey. Promoting SWB is the overall goal.

• Historical discussion: Smith's Wealth of Nations not just about individual production and riches, but well-being. Examples of texts from Neopolitan School Genovesi: "Work for your own interest, of course, but don't make others miserable by your gain, work also for public happiness. ....p. 88. Adds "public happiness" to "liberty, fraternity, and equality"

• Critique of GDP: lumps good and bad economic activity together, some stats keepers even consider illegal economic activity. job creation predicts economic activity, but doesn't tell you about the quality of the jobs. "There are awful jobs." (smelt, smelt). GDP relatively new concept (1930s, against background of mercantilist approach which includes wealth of land, resources, labour, capital and stocks. (A stock is any supply of goods of any kind. Stock Market.)

• More critique of GDP: Arguably, "stocks" matter more than "flows" (GDP). Concern about environment is concern about stocks, migration is about human resources, a "stock", security is a stock. (In food studies, egronomists argue about soil and aquifer quality as a neglected stock.)