Archive | June, 2019

It isn’t the economy, Stupid

7 Jun

Richard LayardAccording to Richard Layard, interviewed on Radio 4’s Today programme a couple of weeks ago (24 May), Bill Clinton was wrong. The economy isn’t what matters most to people when they vote. ‘We know, going back to 1970, what determines why governments get elected all over the world,’ Layard said. ‘People are satisfied with their lives for reasons other than the economy.’

I can’t imagine why I haven’t written about Layard before in this blog. An emeritus professor of economics at the Centre for Economic Performance at the LSE, and also a member of the House of Lords, he was one of the first people in the UK to discuss the policy implications of research into happiness. In his bio on the CEP website we’re told that, ‘Since the 1970s he has urged fellow economists to return to the 18th and 19th century idea that public policy should maximise a social welfare function depending on the distribution of happiness’ (http://cep.lse.ac.uk/_new/staff/person.asp?id=970). Layard’s 2005 book Happiness: Lessons from a New Science has been translated into twenty languages, and he’s one of the co-editors of the UN’s World Happiness Reports (this blog, 18 April ).

Layard believes that relative income has a significant effect on happiness levels, but he doesn’t regard this as the most crucial factor when people are making up their minds how to vote. Mental and physical health, followed by relationships at home, at work and in the community, are what people care about most. After that they begin to think about their income. A government is under a moral obligation to give people what matters to them, he told the Today interviewer – and it’s also in the government’s own interests to do this, as it will help it to get re-elected.

‘Mental health should be a top priority when it comes to NHS spending,’ Layard said. He wants an extra £4 billion to be spent on it, in addition to what’s currently being promised in the NHS spending review. This represents a 6% increase in real terms over the next five years; it would help break the logjam whereby mental health always lags way behind physical health in NHS spending plans. He also thinks that there should be a separate budget for mental health within the overall NHS budget.

In line with this thinking, Layard would like to see much more emphasis placed on mental health issues in schools. In South Australia, he told us, there are teachers who are specially trained to give classes in life skills, and that’s something we need in the UK as well. Plus an awareness of well-being should be built into training courses for all of our teachers.

Apprenticeships and increased spending on further education are among the items which Layard supports for the members of the post-school generation who are not going on to university: ‘they need to see a clear path ahead of them in life.’ And for all of us social connections are of course enormously  important. ‘Loneliness is a huge problem nowadays’, he said; and so the UK government needs to restore the cuts to youth clubs, and to centres for children and old people.

None of this is prohibitively expensive, Layard would argue. It’s more a question of governments getting their priorities right. And although all of these measures would undoubtedly cost money, I absolutely take his point that when it comes to cultivating well-being we need to concentrate more on social spending and less on enhancing personal incomes. The consistent top ranking of Scandinavian countries in the world happiness statistics, if nothing else, hammers home this point.

Layard is convinced that people will vote for governments which follow the course he’s recommending, and give people what matters to them. I can only hope – fervently – that he’s right about this.

 

 

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