Dow Jones Sinks

In this month’s posting for Positive Psychology News Daily, I reviewed some brand new research from Professor Carol Graham, Soumya Chattopadhyay, and Mario Picon (all from the University of Maryland). Their objective was to better understand the effects of the US economic crisis on well-being and to determine if individuals adapt both to the bad news of the crisis and then to the good news of potential recovery.

Looking across time during the crisis, not surprisingly happiness levels decreased markedly at the start of the crisis, reaching their lowest levels early in 2009. They then followed an equally marked upward trend after April 2009. During the downward trend, happiness levels lag the stock market spikes, which makes intuitive sense.

But the most striking result is that happiness levels lead the stock market on the upward trend. What’s more, by July 2009 happiness levels were above those at the start of the crisis, even though the Dow Jones was only just starting to recover, having hit rock bottom.

For the full posting and to read all the comments, see Positive Psychology News Daily.

Image  courtesy of Scorpions and Centaurs

Ice-cold beer - one of life's small pleasures

Another new study (Quoidbach et al, 2010 – see details below) has been published on the topic of money and well-being, specifically, whether being wealthy enough to access the best things in life affects your ability to savour small pleasures.

The research suggests that wealthier individuals report lower savoring ability, and even being reminded of wealth produces the same negative impact on savoring as actual wealth. In fact, you don’t actually need to enjoy any peak experiences (such as spending time on a tropical beach holiday) for your savoring ability to be impaired – simply knowing that these peak experiences are readily available may increase your tendency to take life’s small pleasures for granted.

For a full review of the research and its implications, see Positive Psychology News Daily.

Reference:

Quoidbach, J., Dunn, E.W., Petrides, K.V. & Mikolajczak, M. (2010). Money giveth, money taketh away: The dual effect if wealth on happiness. Psychological Science 21 (6), 759-763.

Image:

Cold beer courtesy of niel schubert

I’m astonished that Ehrenreich links the current economic crisis to positive thinking; what about the role played by good old fashioned greed? Or lack of effective financial regulation? Or technology, which has enabled high-frequency trading (aka casino banking). Surely these are far more likely culprits. By blaming positive thinking we’re unlikely to take the action necessary to avoid the same thing happening again in the future.

There’s been a lot of negative press in positive psychology circles about Ehrenreich’s criticisms of positive psychology, but what I hadn’t appreciated until now was her suggestion that the provision of a welfare state in Scandinavian countries (and presumably also the UK) might be due to pessimistic thinking. And there was I thinking it was because we cared about our fellow beings.

And whilst I agree with her that the US should think long and hard about being 22nd on the list of happy countries, what she doesn’t then question is how this can be the case if America IS the land of positive thinking that she claims it is.

Thanks to Robert Biswas Diener for the link.

We were talking about this just the other day: so here’s an uplifting tale from the States (where else?) on the positive after-effects of losing your job.

The moral of the story? Write a best-seller about your experience, and sell the film rights!

Thanks to Caroline Rivka for the link

Image: Alex Cheek, reused under Creative Commons License

Never mind, I’m sure you’ll find the recent research interesting. Feel free to write your comments on the Positive Psychology News Daily site itself.

Image: thisduck

As with any happiness or life satisfaction league table, who comes top depends on exactly what’s being measured and how. In this article by The Observer journalist John Carlin, Iceland is referred to as the happiest country in the world. How can this be? We all know that it’s Denmark!

Carlin’s conclusion is based on Iceland’s ranking in the Human Development Index (HDI), one of the four United Nations assessments of human potential – it measures three basic dimensions – a long and healthy life, education and a decent standard of living.

1. Health is measured by life expectancy at birth,
2. Education is measured by a combination of the adult literacy rate and the combined gross enrolment ratio in primary, secondary, and tertiary education,
3. Standard of living is measured by Purchasing Power Parity (PPP US$).

So the HDI isn’t actually quantifying either happiness or life satisfaction, and it’s questionable (in Positive Psychology terms) whether health, wealth and education significantly contribute to happiness anyway.

In fact there are some elements of Icelandic society which would contradict the conclusion that it’s one of the best countries in the world to live in, for example, the highest divorce rate in Europe. However, this doesn’t mean they have unhappy families – in fact writes Carlin, “The kids will be just fine, because the family will rally round them, and likely as not, the parents will continue to have a civilised relationship, based on the usually automatic understanding that custody of the children will be shared”.

The article provides further insights into those character traits which might explain why Icelanders are generally happy people (if not the happiest), for example, optimism, resilience, self-confidence and a can-do attitude. That said, if we follow Lyubomirsky’s “Happiness Pie” model, after genes (50%), what we chose to do with our time is the largest contributor (40%) to our happiness – do we have any readers who could comment on how the average happy Icelander spends his/her time?

Whether or not it’s the happiest country, Iceland takes first place in the 2007/08 HDI, followed by Norway, Australia, Canada and Ireland. The USA is in 12th position, Denmark 14th and the UK 16th. At the bottom , not surprisingly are the West African countries of Guinea (175th), Burkina Faso (176th) and Sierra Leone (177th). For the full list, see here.

Image: Gúnna

The article suggests that what people who work hard really want is more time, and advises that the way to create more time is to ‘outsource’ all the jobs that someone else can do for you more cheaply than you can do them yourself. OK, that’s logical to me so far. But then it goes on to say that you should use the extra time you’ve created through outsourcing to “focus all your energy on bringing home the bacon…..After you’ve hit the economics of enough, money has little use, other than as a tool to allow you the economic advantage of creating the life you want with the limited time you have left”.

Hmmm? Run that one by me again?

Surely if time is so precious the last thing you want to be spending it doing is more work? Unless, of course, you’re absolutely passionate about your work, and have the kind of job that you’d do even if you weren’t paid at all. Which is really my point – wouldn’t it be better to find a job that you enjoy doing, where you can use your strengths every day, and which brings out the best in you? It might sound a bit pie-in-the-sky, but it’s perfectly possible for the vast majority of people to achieve this with a little coaching support. You just need to know what your strengths are.

Thanks to Viv T for the article

Image source: bogenfreund

Now Bhutan is in the news again because tomorrow it will hold its first-ever democratic elections. This could be seen as a test of how serious the two main political parties and their supporters are about happiness, or whether, when they have the opportunity, they put economic growth first.

The head of Bhutan’s planning commission suggests that happiness and economic growth are not incompatible, but nevertheless, observers are right to acknowledge that economic growth will have consequences, not all of them positive. But perhaps the Bhutanese know enough about well-being to be wise to the negative effects of materialism.

Whatever the result of the elections, it will be interesting to watch how democracy unfolds in Bhutan in the next few weeks and months.

Image: Babasteve

The Kingdom of Bhutan, a predominantly Buddhist country of approximately 750,000 inhabitants in the Eastern Himalayas, has been measuring Gross National Happiness since the late ’80s. The King, Jigme Singye Wangchuk, was concerned about the sorts of issues affecting countries which focussed only on increasing economic prosperity, and as a result, he declared that GNH (Gross National Happiness) not GDP, was the priority for his people. “The ultimate purpose of government”, he said, “is to promote the happiness of its people”. This, of course, was more than a decade before Martin Seligman launched the Positive Psychology movement.

Now, says writer, analyst and UN Editor Rasna Warah, GNH vs GDP has become an issue in the upcoming Kenyan elections (December 27th). In this article on the All Africa Global Media website, Warah explores the background to GNH, and why it matters. It’s the case that back in 2006 presidential candidate Dr Raila Odinga, cast doubt on the accuracy of Kenyan economic growth figures being quoted by other candidates, and proposed that a GNH survey be carried out instead. In an interview with Nation Magazine, Odinga is quoted as saying: “People are happy when they put food on the table, feed and educate their children.” However I haven’t been able to find any mention of Gross National Happiness on Odinga’s election website. Could it be the case that when the chips are down (and when votes are needed) what people really want to see is good old-fashioned economic growth?

Image: New Scientist

It reveals that Europe is less carbon-efficient at delivering well-being (measured in terms of the happy, long lives of its citizens) than it was over 40 years ago. This might come as a surprise to some people – after all, as a whole we are wealthier than ever.

The good news is that some European countries are doing pretty well in terms of high levels of well-being (a combination of how satisfied people feel with their lives overall, and their life expectancy at birth). Those in the North such as Denmark, Sweden, Iceland and Finland, as well as Switzerland, report the highest levels of subjective life satisfaction. Interestingly, Iceland and Sweden also have some of the lowest per capita carbon footprints, despite being amongst the richest nations. As a result, Iceland tops the European Happy Planet Index, followed by Sweden, Norway and Switzerland.

And the bad news? Some economically-advanced countries feature pretty poorly in the Index. Take the UK for example – it comes 15th out of 30 in rank order for both life satisfaction and life expectancy. It also has the 4th largest per capita carbon footprint in Europe, behind Luxembourg, Estonia and Finland. As a result the UK ranks 21st out of 30 overall in the European HPI, only slightly ahead of ‘transition’ countries such as Bulgaria and Lithuania.

Countries like Germany, Finland and France don’t fare much better either, coming 15th, 16th and 18th in the Index respectively.

So what can we conclude from this? Quite simply, as I’m sure you already know deep-down, consumption is not the main route to well-being. If this were true, the poorer countries would always feature at the bottom of NEF’s league tables, but they don’t.

What the report also shows us, however, is that it is not impossible to be prosperous, happy and green. Perhaps we should be looking towards countries like Iceland and Sweden for some answers?