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Erik Angner22 July 2023

An Economist’s Guide To A Happy Life - Erik Angner - #657

3Frameworks
11Insights

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Frameworks in this episode

Insights & moments

The myth-busts, hot takes, explainers, and tools worth keeping.

Myth Buster· 1

Myth Buster09:30

Having kids makes you less happy but adds meaning

Evidence suggests parents are less happy than non-parents and less happy with their kids than doing other activities, largely due to sleeplessness and roughly $300,000 of pre-college cost. Yet parents report more meaning, feeling part of a bigger whole and the shifts of generations. Children are meaning-making machines that demand an upfront cost.

  • Parents report lower moment-to-moment happiness than non-parents
  • A child costs roughly $300,000 before college
  • Non-financial satisfaction and meaning rise with parenthood
  • Culture over-prioritises immediate happiness, penalising meaning-making

having children makes you less happy than not having children

Erik Angner · 09:30

children are mostly meaning-making machines

Chris Williamson · 14:00
#parenting#meaning#happiness#fertility

Hot Take· 1

Hot Take50:30

On religion and happiness, both conservatives and Marx were right

Religion's happiness boost lets conservatives claim a religious life is genuinely good for people. But Marx's 'opium of the people' also fits: religion has a soothing, anaesthetic effect that makes awful conditions feel less bad. Angner argues both readings can be simultaneously true.

  • Religion correlates with significantly higher happiness
  • Conservative reading: religious life is genuinely good for you
  • Marxist reading: it soothes and numbs the pain of hard conditions
  • Both mechanisms can operate at once (a 'horseshoe' agreement)

there's a sense in which both the conservatives and Marxists were right about religion

Erik Angner · 51:00
#religion#happiness#marx#philosophy

Explainer· 6

Explainer08:30

Why happiness and well-being are not the same thing

Angner separates happiness, a good-feeling mental state psychologists call positive affect, from well-being, which is having your life go well and flourishing. The two usually travel together but can come apart. Some goals are worth pursuing even when they add no happiness or cost you happiness.

  • Happiness = a mental state that feels good (positive affect)
  • Well-being = your life actually going well and flourishing
  • A good life includes happiness but is not reducible to it
  • Some things are good for you even if they don't make you happier

Some things are good for us even if they don't make us happier.

Erik Angner · 10:00
#happiness#well-being#philosophy#psychology
Explainer24:30

Why high aspirations can make you less happy

How happy you are depends on both what you attain and how much you aspired to. The more you get the happier you are, but the more you aspire to the less happy you are. A student who expected an A hates a B; one who feared failing celebrates a D. The trap: this seems to argue for lowering all standards, but well-being sometimes requires pursuing hard goals that make you miserable.

  • Happiness = a function of attainment relative to aspiration
  • High-aspiration people attain more yet report less happiness
  • Expectations, not just results, set how good the outcome feels
  • Don't over-correct into abandoning all goals: well-being needs some

the more you get, the happier you are. But the more you aspire to, the less happy you are.

Erik Angner · 24:30
#aspiration#expectations#happiness#goals
Explainer49:30

The big four predictors of unhappiness

The factors most strongly indicative of happiness are poverty, unemployment, poor health and religiosity. The first three drag happiness down; being religious is associated with being significantly happier than atheists, possibly through the companionship and community of regular worship.

  • Big four: poverty, unemployment, poor health, religiosity
  • Religious people are on average significantly happier than atheists
  • Companionship and community may be the shared mechanism
  • These are population averages, not individual guarantees

poverty, unemployment, poor health, and religiosity. Those seem to be the big four.

Chris Williamson · 49:30
#happiness#religiosity#health#predictors
Explainer51:30

Unemployment damages happiness far beyond lost income

Unemployment is a huge predictor of unhappiness, and the harm goes well past the lost paycheque. Losing a job makes people feel redundant, unappreciated and useless, and severs the daily social contact many get mainly through work. A decent job to go to matters for happiness even setting income aside.

  • Unemployment predicts unhappiness beyond the income loss
  • It triggers feelings of redundancy and uselessness
  • Work is a primary source of daily companionship for many
  • Companionship recurs as a mechanism across happiness findings

unemployment seems to matter beyond the loss in income

Erik Angner · 51:30
#unemployment#work#companionship#happiness
Explainer55:30

Why we adapt to some health conditions but not others

Humans adapt to many health conditions, returning toward baseline happiness, as in Adam Smith's man with a wooden leg who rediscovers the pleasures of solitude and society. But conditions that interrupt you constantly, like chronic pain or incontinence, resist adaptation and leave a lasting dent in happiness. Environment and technology also decide how much a condition costs you.

  • We adapt to many conditions, drifting back toward baseline happiness
  • Adam Smith's wooden-leg man rediscovers life's pleasures over time
  • Chronic pain and incontinence interrupt constantly and resist adaptation
  • Society and technology (glasses, ramps) shape a condition's real cost

the ones that are easier to adapt to are not going to harm your happiness quite as much over time as the others do

Erik Angner · 64:00
#health#adaptation#chronic-pain#adam-smith
Explainer17:30

Why parenthood is easier on happiness in continental Europe

The happiness hit from having a child varies by country, and public policy is a big reason. Parental leave with salary, universal healthcare and family support cushion the financial and health shocks of a new child. Continental Europe fares better than the US and UK, where healthcare tied to employment adds a brutal risk for new parents.

  • The happiness effect of a child varies sharply by location
  • Parental leave and healthcare cushion the financial strain
  • Continental Europe outperforms the US and UK on this
  • US healthcare tied to employment holds new parents to ransom

America is ruthless. You get 3 and 1/2 days off and you're expected to be back in the office answering emails while they're still cutting…

Chris Williamson · 19:00
#policy#parenting#healthcare#happiness

Story· 1

Story35:30

The nightclub guest-list obsession that taught opportunity cost

Running the biggest events company in his city, Williamson spent up to 90 minutes a week meticulously realigning guest-list numbers into a tidy column, for a list where half the names never showed. The story illustrates paying attention to the wrong details: to be great you must attend to details that actually change the outcome.

  • Williamson realigned guest-list numbers for months for no real benefit
  • Roughly half the guest list never even showed up
  • The task felt important but had zero effect on the event's outcome
  • Greatness requires attention to the right details, not all details

if the orientation of the pluses or whatever really has no effect on the outcome of the event, then the opportunity cost is overwhelming

Erik Angner · 37:30
#opportunity-cost#focus#productivity#story

Takeaway· 2

Takeaway39:30

Opt out of the keeping-up-with-the-Joneses arms race

We judge how well we're doing by comparison to those around us, which drags people into status arms races: each works more for a shinier car, ending up equal but poorer in time. Angner deliberately talks himself out of the latest iPhone and redirects the saved money toward things that actually give him happiness.

  • We assess ourselves by comparison, not objective yardsticks
  • Status competition wastes money and time on goods nobody really wanted
  • Consciously opting out frees money for higher-happiness uses
  • We over-weight material belongings relative to what makes us happy

I feel the urge to buy one, too. But I succeed in talking myself out of that, and I save a lot of money that…

Erik Angner · 40:30
#status#materialism#comparison#spending
Takeaway47:00

Well-being is multi-dimensional, so stop reducing it to one number

Depression and unhappiness are less correlated than you'd expect; some people laugh a lot yet score high on depression. Satisfaction can keep rising among the very rich even as moment-to-moment happiness tapers. To understand a life or a society you must track these dimensions separately rather than collapsing them into 'happiness.'

  • Depression and unhappiness are weakly correlated, not identical
  • Life satisfaction and positive affect can diverge, especially for the rich
  • Mental health and well-being are genuinely multi-dimensional
  • One 'happiness' number is not precise enough to guide decisions

mental health or well-being is a multi-dimensional thing

Erik Angner · 47:30
#well-being#measurement#depression#satisfaction