Economic growth no longer adds to contentment of Finns

Gross national product trebles, satisfaction level stays put

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The contentment of the Finns has tailed off, despite the continued economic growth. According to a new report by the National Research and Development Centre for Welfare and Health (STAKES), the threefold growth in per capita gross national product in the past 40 years has failed to increase the citizens' sense of satisfaction.
      The Finns’ contentment peak in 2004 was only slightly above the 1966 level, despite the fact that the GDP in 1966 was only EUR 11,000 per capita, against today’s EUR 32,000.
     
After the basic needs have been met by a reasonably high standard of living, the contentment of the people can only be added to by immaterial values, such as human relationships, the sense of participation, health, respect of the community, fairness, and meaningful ways of occupying one’s time.
      According to special researcher Pasi Moisio this so-called Easterlin paradox has been noted in every wealthy country. Even in Finland the general level of satisfaction no longer changes.
      In the field of economics, there has been plenty of discussion on the subject, and the OECD has launched several research projects into the relationship of GDP and the level of public contentment, Moisio points out.
     
Contentment is divided according to subsistence level - in other words, wealthy people are also more satisfied, while those with small earnings and the poor are less satisfied.
      "In fact, with the increase of ailments related to a high standard of living we have already reached the tipping point", Moisio continues. "Money only brings happiness to a certain point."
      STAKES Deputy Director General Matti Heikkilä says that it is difficult for the society to add any more to the citizen’s contentment. Instead, the current social policy increasingly aims to educate people and direct them to change their lifestyle.
     
The problem is that revising people’s way of living through government means is more complicated than the traditional elimination of poverty and hunger.
      To balance out those who are content, a portion of the people remain saddled with multiple difficulties. Some 87 percent of the Finns are happy, 13 percent are not. According to STAKES, these people find it difficult to cover the outgoings of the household with their present level of income.
     
STAKES reports that the practiced policy has led to an increase of income disparity and relative poverty.
      In addition to income disparity, health disparity is also on the up, in the sense that there is a clear gap in the wellness of different strata in society. 
      For some of those on small incomes, their well-being has not increased at all in the past ten years.
      Those dissatisfied with their lives include sickness and disability pensioners, single persons, and the unemployed. A third of the unemployed say they are discontented.


Previously in HS International Edition:
  The golden age gives way to grim reality (2.1.2008)
  ETLA: Income disparity likely to increase as economy slows down (5.12.2007)

Links:
  Easterlin paradox (Wikipedia)
  STAKES, the National Research and Development Centre for Welfare and Health

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