Tag: economics

anthropology · culture · emotion · happiness · health · Social

The UN Embraces the Economics of Happiness — YES! Magazine

Beth Kelley1 Comment

Should happiness and well being be considered a metric to measure overall success of a country? The UN just voted yes:

Imagine you open the paper tomorrow, and the headlines are not about the “sluggish economy,” but our nation’s quality of life. You turn to the business section, and find not just information about a certain company’s profitability, but also about its impact on community health and employee well-being.

Imagine, in short, a world where the metric that guides our decisions is not money, but happiness.

That is the future that 650 political, academic, and civic leaders from around the world came together to promote on April 2, 2012. Encouraged by the government of Bhutan, the United Nations held a High Level Meeting for Wellbeing and Happiness: Defining a New Economic Paradigm. The meeting marks the launch of a global movement to shift our focus away from measuring and promoting economic growth as a goal in its own right, and toward the goal of measuring—and increasing—human happiness and quality of life.

Not just for dreamers

Some may say these 650 world leaders are dreamers, but they are the sort that can make dreams come true. The meeting began with an address by Prime Minister Jigmi Thinley of Bhutan, where the government tracks the nation’s “Gross National Happiness.”…

UN Secretary-General Ban Ki-moon cited Aristotle and Buddha in calling for the replacement of our current economic system with one based on happiness, well-being, and compassion. “Social, economic, and environmental well-being are indivisible” he said.

Read more at: The UN Embraces the Economics of Happiness by Laura Musikanski — YES! Magazine.

Pretty exciting stuff. Bhutan has been using happiness as a metric for several years. so it’s nice to see the idea get picked up on. I believe emotional well-being and happiness is a very valuable metric. What about you? Leave your thoughts in the comments below.

behavior · happiness · mental health

How Optimism Affects the Economy | LearnVest

Beth Kelley
find your happy place
Image by emilychang via Flickr

Seattle is known for its gray skies, and perhaps stand-offish attitude to new comers, but I’d argue we are a surprisingly optimistic metropolis. In fact, we’re number four on a Gallup poll’s list of happy major cities. It turns out this is also a good thing for our local economy.

According to new research… the happier you are, the quicker the area you call home is likely to recover. In other words, it’s not just the economy that affects ours moods—it might actually work the other way around, too.

A recent study by the University of Miami School of Business Administration has shown that in in states where people are more optimistic, an economic recession is weaker, expansion is stronger and recovery faster.

Alok Kumar, one of the study’s researchers and a finance professor at the University of Miami School of Business, measured optimism levels across different U.S. states by looking at three key factors: weather, sports optimism and political optimism. In other words,  warm, sunny weather encourages the release of serotonin in the brain, which makes people alert and cheerful. Additionally, we’re happier when the political party we like is in power and our sports teams are performing well.

After creating an index to measure economic well-being in those same places, the researchers crunched the numbers to reveal the correlation between mood and economic activity. Overall, they found that happier places had higher retail sales, which improves the economic climate and helps lessen the effects of a recession. The results of the study showed that other non-economic factors—like warm weather and good sports teams, which improve happiness and optimism—also helped improve local economy, meaning that your mood (and the mood of your town’s fellow residents) can directly impact your area’s economic outlook.

read more about the study via Find Your Happy Place: How Optimism Affects the Economy | Living Frugally | Psychology Of Money | LearnVest – Where life gets richer, and check out their recommendations for happiest large, medium, and small cities.

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education · school

The new economics of college vs. trade school…or no school

Beth Kelley

This is something that people have been struggling with for awhile, but as this article from the New York Times says, the current economic crisis is putting it into sharp perspective: a lot of kids are being pushed to go to college when in fact it may not be the best choice for their future.

College degrees are simply not necessary for many jobs. Of the 30 jobs projected to grow at the fastest rate over the next decade in the United States, only seven typically require a bachelor’s degree, according to the Bureau of Labor Statistics.

Among the top 10 growing job categories, two require college degrees: accounting (a bachelor’s) and postsecondary teachers (a doctorate). But this growth is expected to be dwarfed by the need for registered nurses, home health aides, customer service representatives and store clerks. None of those jobs require a bachelor’s degree.

Professor Vedder likes to ask why 15 percent of mail carriers have bachelor’s degrees, according to a 1999 federal study.

“Some of them could have bought a house for what they spent on their education,” he said.

Read the article…

Even though I was someone who excelled in college, and even went to graduate school, I am in fact a strong proponent of the idea that college is unnecessary for a lot of people. I think this was brought home even more for me the year that I worked as a college teaching assistant. The push for four-year colleges is almost starting to feel like a racketeering job.

I think we in the U.S. need to move past the stigma of not having a college degree being equivalent to being a slacker or stupid or unmotivated. If anything, they are smarter for not automatically buying into the system, they are more motivated to start contributing to the workforce, and more goal-oriented than their college-bound counterparts who often view college as an extension of high school.

gender

How women should ask for a raise

Beth Kelley

A couple of years ago I read the study that discussed how women who ask for raises are seen as pushy and it usually doesn’t go so well as for men. So how do we not come off as pushy, but still receive equal pay, I thought. FINALLY someone has done a study to try and figure out the answer. From the New York Times:

The work by Ms. Riley Bowles and her peers suggests that women in the work force can use specific advice. Here are some of their suggestions:
BE PROACTIVE If you believe you deserve a raise, don’t sit around and wait for someone to notice. “A lot of women, and this is quite commonly found, think, ‘As long as I work really, really hard, someone will notice and they will pay me more,’ ” said Karen J. Pine, a psychology professor at the University of Hertfordshire in Britain and co-author of “Sheconomics” (Headline Publishing Group, 2009). But “people don’t come and notice.”
You also want to think about the best time to approach your boss. It may make sense to approach him or her after an annual performance review, said Evelyn F. Murphy, president of the WAGE Project, a nonprofit organization, who runs negotiation seminars for women. “Or, if you just took on a major responsibility or won an award.”
BE PREPARED Doing your research pays, literally. A study found that men and women who recently earned a master’s degree in business negotiated similar salaries when they had clear information about how much to ask for.
But in industries where salary standards were ambiguous, women accepted pay that was 10 percent lower, on average, than men. “In our experiments, we found that with ambiguous information, women set less ambitious goals,” said Ms. Riley Bowles, who ran the study. “They asked for less in a competitive negotiation and got less.”
That theory also holds in other areas where there aren’t set expectations, like executive bonuses and stock options. “You get bigger gender gaps in those less standard forms of pay,” she added.