In 2018, Canada ranked seventh in the World Happiness Index. The top 10 happiest countries for that year were as follows:
1. Finland
2. Norway
3. Denmark
4. Iceland
5. Switzerland
6. Netherlands
7. Canada
8. New Zealand
9. Sweden
10. Australia
While the United States ranked 14th from 2014–2016, it dropped four places to the 18th spot in 2017, despite having a higher GDP per capita than most countries in the top 10. In 2018, it remained 18th. Since 2008–2010, the five countries that experienced the largest drop in ranking were Ukraine, Yemen, Syria, Malawi, and Venezuela, all of which are countries facing violence, war, and human rights issues. Measuring happiness is not an exact science, as factors other than GDP per capita are considered. Additional factors that could be considered when assessing a country’s overall well-being are the distribution of income in society, the health of citizens, life expectancy, the quality of education, housing and homelessness, pollution, and corruption and violence.
Is there a connection between happiness and economics? Perhaps, since many of the top 10 countries on the World Happiness Index also rank the highest for labour productivity, according to the OECD. So, the next time you encounter GDP per capita in a comparison of countries, remember to think like an economist and consider the limitations of this statistic and consider extra factors that can better measure happiness and well-being.
APPLYING ECONOMIC THINKING
1. Why is GDP per capita a limited statistic when measuring quality of life?
2. Use the Internet to access the latest World Happiness Report. Which countries experienced the greatest increase/decrease on the most recent happiness report? Why? What happened to Canada’s rank?
3. With reference to the World Happiness Index, create a collection of photos on what defines happiness using technology. What photos would you choose to represent what happiness means? Why did you select these images? Write a one-paragraph reflection justifying your photo selections and how they represent well-being. Be sure to properly source all images.