The Happiness Index and Its Prospects for Stimulating Economic Growth: From Easterlin's Paradox to Wellbeing Policy Introduction: Rethinking the Paradigm of Progress Traditional economic doctrine posits a direct dependence between GDP growth and societal well-being. However, since the 1970s, after the work of economist Richard Easterlin, this postulate has been challenged. The "Easterlin Paradox" demonstrates that after reaching a certain level of per capita income (approximately $20,000-25,000 per year in current prices), further GDP growth almost does not correlate with an increase in subjective well-being (subjective happiness). This discovery has laid the groundwork for the development of alternative metrics of progress, among which the Happiness Index (e.g., the World Happiness Report, the UN) has taken center stage. The prospect of using the happiness index as a stimulus and goal of economic growth marks a shift from an "economy of 'more'" to an "economy of 'better'." 1. Structure and Components of the Happiness Index: What Really Matters Modern happiness indices (such as those used in Bhutan — the Gross National Happiness Index, or in the UN) are comprehensive and include both objective and subjective indicators. Key components are usually as follows: Economic factors: GDP per capita, but with diminishing returns. The stability of income, job security, and the absence of catastrophic personal expenses (such as medical care) become more important. Social support: The presence of people on whom one can rely in difficult times. Studies show that strong social connections are one of the most powerful predictors of happiness and longevity. Expected healthy life expectancy: The quality of health as the ability to lead an active life. Freedom of life choices: The perceived ability to make key life decisions (where to live, whom to work with, whom to create a family with). Altruism: The frequency of charitable donations and help to strangers. This indicator ... Read more