Index of Happiness and Its Prospects for Stimulating Economic Growth: From Easterlin's Paradox to Well-being Policy Introduction: Rethinking the Paradigm of Progress Traditional economic doctrine posits a direct dependence between the growth of gross domestic product (GDP) and the well-being of society. However, since the 1970s, after the work of economist Richard Easterlin, this postulate has been called into question. The "Easterlin Paradox" demonstrates that after reaching a certain level of per capita income (about $20,000-25,000 per year in current prices), further growth in GDP is almost not correlated with an increase in subjective well-being (subjective happiness). This discovery laid the groundwork for the development of alternative metrics of progress, among which the Index of Happiness (such as the World Happiness Report, UN) has taken a central place. The prospect of using the happiness index as a stimulus and goal of economic growth marks a shift from an economy of "more" to an economy of "better". 1. Structure and Components of the Happiness Index: What Really Matters Modern happiness indexes (such as those used in Bhutan — the Gross National Happiness Index, or in the UN) are comprehensive and include both objective and subjective indicators. Key components are usually as follows: Economic factors: GDP per capita, but with diminishing returns. More important becomes income stability, job security, and the absence of catastrophic personal expenses (such as medical care). Social support: The presence of people on whom one can rely in difficult times. Studies show that strong social connections are one of the most powerful predictors of happiness and longevity. Expected healthy life expectancy: The quality of health as the ability to lead an active life. Freedom of life choices: The perceived ability to make key life decisions (where to live, whom to work with, whom to create a family with). Generosity (altruism): The frequency of charitable do ... Read more