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Showing posts with label happiness. Show all posts
Showing posts with label happiness. Show all posts

Friday 31 July 2020

Economics for Non Economists 3 – Explaining GDP and Economic Growth


By Girish Menon
Introduction
You will have recently read:
 
What does this mean?
Just like the Forbes magazine compiles an annual list of the richest individuals on planet earth, most countries participate in an annual ‘show of wealth’. The most commonly used measure in this competition is called GDP. At the end of 2019 the top six countries were:
Table 1
Country
GDP
($ trillions)
Economic growth over previous year (%)
Per Capita GDP ($)
Share of World GDP (%)
USA
19.5
2.2
59, 939
24
China
12.2
6.9
8,612
15
Japan
4.9
1.7
38,214
6
Germany
3.7
2.2
44,680
4.5
India
2.7
6.7
1,980
3.28
UK
2.6
1.8
39.532
3,26
What do these terms mean?
Simply defined, GDP or Gross Domestic Product is the money value of all goods and services (goods) produced within an economy in a period of time. In Table 1 the GDP is estimated over the year of 2019. The data quoted in the introduction compares GDP changes over the first two quarters of 2020.
Economic growth is a measure of the additional goods produced by an economy over the last period of time  (say a year or a quarter).
Per Capita GDP means the value of goods each resident would get if all goods produced in an economy is shared equally. This is calculated by dividing the GDP with the residents of the country. Do you think per capita GDP is an accurate description of how goods are actually distributed in an economy?
Share of World GDP means the share of global goods produced by an economy. This is calculated by dividing each country’s GDP with the whole world’s total GDP.
Why is GDP and the rate of Economic growth so important?
Materialism is the underlying principle of using GDP and economic growth as the most important indicator of economic performance. Materialism, according to the Cambridge English Dictionary, is the belief that having money and possessions is the most important thing in life. It follows that as one’s material goods increases one’s standard of living (happiness) tends to increase.

GDP is a tool that measures the volume of material goods produced by an economy. A high rate of economic growth demonstrates the rate at which the material goods in an economy is increasing and as a result the happiness of the residents as well. So, when the rate of economic growth becomes negative, as in the data mentioned in the introduction, it follows that your happiness will decrease.

Are GDP and GNP the same?

They are similar but not the same. GDP measures the volume of goods produced by people living within the boundaries of an economy. The output of Nissan’s Sunderland plant will be included in UK’s GDP. In other words the output of Britons and foreign nationals living in the UK will be added to calculate UK’s GDP.

GNP stands for Gross National Product. It is a measure of the volume of goods produced by British nationals living in the UK and outside. It will exclude the output of foreign nationals (say Nissan Sunderland) operating within the British economy.

Is GDP an accurate measure of the volume of goods produced within an economy?
The answer is No. The calculation is arduous and with questionable assumptions which I will not go into here. I will however mention some weaknesses here:
1. Even though there are some standardised procedures for its computation governments are known to deliberately intervene in its methodology and computation.
2.   Not all goods are included. For example if you clean your own house and look after your family – these services are not included. However, if you employ a cleaner, a cook, a nanny and a driver then their services are included.
3.   In some countries where there is a large informal economy. The goods produced by such activities are not be included in GDP computations.
Does an increase in GDP necessarily improve residents’ happiness?
In economics, happiness is better known as welfare.
If there is an earthquake in your country and many roads, buildings, bridges, stadia are destroyed. Then rebuilding them will increase the national GDP but has it improved the citizens’ welfare?
As a resultant of economic growth the quality of air you breathe has gone down and the water supply is polluted. Has this improved your standard of living?
Due to increased standard of living everybody has a car and you are now required to spend one hour extra in commuting time. Has this resulted in improved happiness?
What is the prognosis for GDP and economic growth?
It appears that due to Covid-19 the GDP of most nations will be lower than in 2019. These economies will have negative economic growth which means that in 2020 they will produce fewer goods than in 2019.
When the GDP falls, the terms most used are recession and depression. The difference between the two according to Harry Truman is ‘It's a recession when your neighbour loses his job; it's a depression when you lose yours’ .
As you have seen in the news, firms are busy firing staff which means there will be increased unemployment. Since more people are unemployed they will not have money to buy goods in the future and so there will be even less demand for goods in the future and those who have jobs today may lose their jobs next year in a downward spiral of negative economic growth begetting even more negative growth.
Will there be lower emphasis on GDP and economic growth in the future? For such a change to happen there needs a material change in organising the world economy. (If you wish to read further click here)
I hope it happens in my lifetime.
* - annualised rate

---Also watch

How the Economic Machine Works by Ray Dallio


Friday 28 June 2019

World Happiness Report - Pakistan leads South Asia

Daud Khan in The Friday Times

The World Happiness Report 2019, which ranks countries according to how happy their citizens are, came out recently. As usual, when such international rankings are published, the first reaction is to look at who tops the lists and where Pakistan stands. Topping the ranking were the usual suspects – Finland, Denmark, Norway, Netherlands, Switzerland and Sweden – the ones that top almost all rankings related to quality of life. No surprises here. The surprise was Pakistan. Unlike other rankings, where we are usually in the bottom quartile or quintile, we were ranked 67th out of 156 countries in the survey. We were the highest in South Asia, above Nepal (100), Bangladesh (125), Sri Lanka (130) and India (140). We also ranked higher than China (93), some European countries such as Croatia (75) and Greece (82), as well as the richer Muslim countries such as Turkey (79) and Malaysia (80).

Happiness theory came into the public discourse following the publication of a seminal book by Richard Layard of the London School of Economics – Happiness: Lessons From A New Science. The book reported a number of surveys in Britain and the U.S. that showed that people had not become happier in the post-war period despite massive economic growth. The book also reported that while incomes were important, people gave high value to things like family, friendship, social status and living in a safe society. Since the publication of the book, much work has been done to delve deeper into the issue. One of the key findings of this research is that the subjective levels of happiness-unhappiness are a legitimate measure of wellbeing. They are well correlated with objective measures of brain activity, and with events such as marriage and divorce, birth and death; and getting and losing a job.

So what makes a country happy? The report looks at six factors. Of these, two are measured quantitatively – GDP per capita adjusted for real purchasing-power and life expectancy at birth. The other four factors are measured by answers to the following question: If you were in trouble, do you have relatives or friends you can count on? Are you satisfied with your freedom to choose what you do with your life? Have you donated money to a charity in the past month? Is corruption widespread throughout the government? Is corruption widespread within businesses? These six factors explain levels of happiness in most countries. The largest single contributor to happiness comes from the existence of good social support systems which account for 34 percent, followed by GDP per capita (26 percent), life expectancy (21 percent), freedom (11 percent), generosity (five percent), and lack of corruption (three percent). In most South Asia these six factors account for 70-80 percent of the happiness score of countries.

In Pakistan, however, these six factors taken together do not explain even half of our happiness score. It is something apart for the usual things (income, health, social security) that makes Pakistanis happy. So what is it? We are free to speculate but my guess it is the music, the optimistic and cheerful nature of Pakistani people, the feeling that things are getting better, and the close relationship Pakistanis have with family, friends and community. These are things which make Pakistanis unique and something we need to recognise and cherish.

The report also compares countries’ happiness scores between 2005-8 and 2016-18. Over this period Pakistan has increased its happiness score significantly (by 0.703 on a scale from 0-10). This has placed it number 20 on the list of counties that have grown happier. Again the same question comes to mind – what has made Pakistanis happier over the last 10-12 years? Some answers come to mind such as the improved law and order situation; better roads, electricity supply and the cellular phone network; and the ability to change governments peacefully through the ballot box.

While the report does not answer the question about why Pakistanis are happy and have been getting happier, it does have two messages that are very important for families as well as policy makers. First, that the increasing amount of time spent on social media, especially by adolescents, reduces time spent on happiness enhancing activities such as being with friends and family. Pakistani families need to take note and act accordingly. Second, mental health and associated addictions for example to food, internet usage or drugs create crushing unhappiness. In Pakistan neither public health policies nor social norms recognize that metal health is as important as physical health. This is something that needs a lot more attention than it gets.

Another interesting finding from the report is that happiness in India between 2015 and 2018 fell significantly (by 1.137). This places it among the top of the league table of countries that have become unhappier alongside Venezuela, Yemen, Central African Republic and Greece.

The report suggests that unhappier people hold more populist and authoritarian attitudes. Probably the success of the BJP, and other populist and nationalist parties, has been their ability to target the unhappiness and anger of voters.

Tuesday 19 March 2019

The best form of self-help is … a healthy dose of unhappiness

We’re seeking solace in greater numbers than ever. But we’re more likely to find it in reality than in positive thinking writes Tim Lott in The Guardian


  
‘Self-help is almost as broad a genre as fiction.’ Photograph: Christopher Thomond/The Guardian


Booksellers have announced that sales of self-help books are at record levels. The cynics out there will sigh deeply in resignation, even though I suspect they don’t really have a clear idea of what a self-help book is (or could be). Then again, no one has much of an idea what a self-help book is. Is it popular psychology (such as Blink, or Daring Greatly)? Is it spirituality (The Power of Now, or A Course in Miracles)? Or a combination of both (The Road Less Travelled)?

Is it about “success” (The Seven Secrets of Successful People) or accumulating money (Mindful Money, or Think and Grow Rich)? Is Caitlin Moran’s How to Be a Woman self-help? Or the Essays of Montaigne?

Self-help – although I would prefer the term “self-curiosity” – is almost as broad a genre as fiction. Just as there are a lot of turkeys in literature, there are plenty in the self-help section, some of them remarkably successful despite – or because of – their idiocy. My personal nominations for the closest tosh-to-success correlation would include The Secret, You Can Heal Your Life and The Life-Changing Magic of Tidying Up – but that is narrowing down a very wide field.

In the minority are the intelligent and worthwhile books – but they can be found. I have enjoyed so-called pop psychology and spirituality books ever since I discovered Families and How to Survive Them by John Cleese and Robin Skynner in the 1980s, and Depression: The Way out of Your Prison by Dorothy Rowe at around the same time.

The Cleese book is a bit dated now, but Rowe’s set me off on a road that I am still following. She is what you might call a non-conforming Buddhist who introduced me to the writing of Alan Watts ( another non-conformer) whose The Meaning of Happiness and The Book have informed my life and worldview ever since.

The irony is that books of this particular stripe point you in a direction almost the opposite of most self-help books. Because, from How to Win Friends and Influence People through to The Power of Positive Thinking and Who Moved My Cheese?, “positive thinking” seems to be the unifying principle (although now partially supplanted by “mindfulness”).

The books I draw sustenance from contain the opposite wisdom. This isn’t negativity. It’s acceptance. Such thinking does not at first glance point you towards the destination of a happier life, which is probably why such tomes are far less popular than their bestselling peers. Yet these counter self-help books have a remarkable amount in common.

Most of them have Buddhism or Stoicism underpinning their thoughts. And they offer a different, and perhaps harder, road to happiness: not through effort, or willpower, or struggle with yourself, but through the forthright facing of facts that most of us prefer not to accept or think about.

Whether Seneca, or Nietzsche, Viktor Frankl or Rowe, Watts or Oliver Burkeman (The Antidote), or most recently Jordan B Peterson (12 Rules for Life), these thinkers all say much the same thing. Stop pretending. Get real.

It is not easy advice. Reality – now as ever – is unpopular, and for good reason. But the great thing about these self-help books is that, while giving sound advice, they are clear-eyed in acknowledging the truth: that happiness is not a given for anyone, there is no magic way of getting “it” – and that, crucially, pursuing it (or even believing in it), is one of the biggest obstacles to actually receiving it.

Such writers suggest the radical path to happiness comes from recognising the inevitability of unhappiness that comes as a result of the human birthright, that is, randomness, mortality, transitoriness, uncertainty and injustice. In other words, all the things we naturally shy away from and spend a huge amount of time and painful mental effort denying or trying not to think about.

Peterson perhaps puts it too strongly to say “life is catastrophe”, and the Buddha is out of date with “life is suffering”. Such strong medicine is understandably hard to take for many people in the comfortable and pleasure-seeking west. And despite what both Peterson and the Buddha say, not everyone suffers all that much.

Some people are just born happy or are lucky, or both, and are either incapable of feeling, or fortunate enough to never to have felt, a great deal in the way of pain or trauma. They are the people who never buy self-help books. But such individuals, I would suggest (although I can’t prove it), are the exception rather than the rule. The rest of us are simply pretending, to ourselves and to others, in order not to feel like failures.

But unhappiness is not failure. It is not pessimistic or morbid to say, for most of us, that life can be hard and that conflict is intrinsic to being and that mortality shadows our waking hours.

In fact it is life-affirming – because once you stop displacing these fears into everyday neuroses, life becomes tranquil, even when it is painful. And during those difficult times of loss and pain, to assert “this is the mixed package called life, and I embrace it in all its positive and negative aspects” shows real courage, rather than hiding in flickering, insubstantial fantasies of control, mysticism, virtue or wishful thinking.

That, as Dorothy Rowe says, is the real secret – that there is no secret.

Monday 12 June 2017

Would being high achievers make my kids happier? Or should I let them chill out?

Romesh Ranganathan in The Guardian


It was the first day after half term, and I was walking the kids into school when I found myself stunned by a statement made by one of the other parents: “I know I’m a good parent.” How can you possibly know that? Hope? Yes. Strive? Sure. But know? Like, really know? I would argue that if you “know” you are a really good parent, you almost definitely aren’t. How can you be certain that nothing you have said or done has messed up your kids in some way? When I was a kid, my mum told me I had “cute little boobies” and I didn’t go swimming for six months. I still wear a T-shirt in the pool.

The ultimate aim of any parent is for their children to grow up to be happy. But how the hell do you achieve that? Two of our children are at primary school. We really worry about one of them. The other one makes us worry for the school. Last week, he told us his new favourite word was “vagina” and he was going to say it as much as possible. I’m imagining appropriate context was irrelevant to him. Then I became terrified there would be appropriate context. Or inappropriate context. Basically, I didn’t want him using the word vagina. But you can’t say that to him. If you react with shock or panic, you are basically giving that word magic powers. It suddenly becomes a word that will always get attention and then you are in Sainsbury’s and your kid is saying: “Can I have a fidget spinner? Can I have a fidget spinner? VAGINA.”

Parenting presents dilemmas like this all the time. Recently, my wife told me that some of the parents had been giving their children practice test papers and had arranged for them to have tuition. While this seems excessive for primary school, I understand. Education seems to be placing increased emphasis on assessment and tracking, which means parents are terrified that if their kid doesn’t exceed their expected learning level at six years old, they are immediately put in the class that ends up working at McDonald’s.

But what’s wrong with that? The general assumption by parents seems to be that higher attainment leads to better job prospects, which lead to better pay, which leads to happiness. But studies over the past couple of years show that not to be the case. While it is clear that there is a strong correlation between poor education and mental health issues, what has also been found is that the odds of personal happiness are equivalent regardless of levels of educational attainment. I have taken this to mean that I can stop reading with my kids. And, by that, I mean I can stop feeling bad about not doing it. If happiness is not impacted by attainment, then why the hell are we all making our kids unhappy by forcing them to work harder? If they want to study hard, great; but if they don’t, why not just let them be happy slackers?

I have even begun to wonder if a “normal” upbringing might be detrimental to our children. All of the most interesting people had a horrible time as kids. All the best rappers struggled. Kanye West is a notable exception, but in lieu of a terrible upbringing he is trying his hardest to have a truly dreadful adulthood. I am contemplating sending my children out on to the streets for six months to give them a sense of appreciation and a decent backstory.

I’m not even sure that child labour is a bad thing. It has a bad press and we are instinctively opposed, but I think it suffers from the issues of both being poorly regulated and using the wrong children. We should be using children from this country. Our children are spoilt. The lower labour costs will bring us right back into competitive manufacturing and our children might be a little more grateful. Our second son often shouts: “I don’t want to go to school.” How about you go and make iPhones for a couple of years? We’ll see how much you want to go to school then, mate.

This “happiness dilemma” was brought into sharp focus recently when one of our sons asked if he could play on the Xbox on a weekday. (We have a weekends-only policy, mainly because I am trying to make some progress on Grand Theft Auto.) I said no, and he got upset. He told me he didn’t love me any more. Two things occurred to me at this point: 1) I had directly reduced his immediate happiness and 2) Him telling me he didn’t love me had absolutely no effect. In fact, he taught me a valuable lesson on how transient the idea of love can be. It did make me wonder why we were doing it though. What are we training him for? When he grows up, he will be able to play whenever he wants. The obvious argument is we don’t want him playing it too much. But then, why not just let him play and then if it becomes excessive, just say: “You’re playing it a bit too much”? He will argue, we will have to demand he stops, he will then shout and we will have to discipline him. It appears that the reason we have introduced a “weekends-only” policy is so we can have an easier life.

I don’t think my wife and I are doing a bad job of parenting necessarily, but we have no idea how what we are doing is impacting their future happiness, and I am no closer to figuring out how hard to push them at school. I have noticed, however, that our youngest son has cute little boobies, but I haven’t mentioned it. That’s progress.

Friday 30 September 2016

Why you need to count time, not money

by Oliver Burkeman in The Guardian

Should you choose time over money, or money over time? This is one of those so-called dilemmas of happiness that isn’t really a dilemma at all, because the answer’s so painfully obvious. Circumstances might oblige you to choose money over time. But if you truly, ultimately value a large bank balance over meaningful experiences, you’re what’s known in the psychological literature as a doofus. Money, after all, is just an instrument for obtaining other things, including time – whereas time is all we’ve got. And to make matters worse, you can’t save it up: if money worked like time, every new deposit into your account would be immediately eliminated by a transaction fee of exactly the same size. However much you hate your bank, it’s surely not that bad.

And yet we do choose money over time, again and again, even when basic material wellbeing doesn’t demand it. Partly, no doubt, that’s because even well-off people fear future poverty. But it’s also because the time/money trade-off rarely presents itself in simple ways. Suppose you’re offered a better-paid job that requires a longer commute (more money in return for less time); but then again, that extra cash could lead to more or better time in future, in the form of nicer holidays, or a more secure retirement. Which choice prioritises time, and which money? It’s hard to say.

Thankfully, a new study sheds a little light on the matter. The researchers Hal Hershfield, Cassie Mogilner and Uri Barnea surveyed more than 4,000 Americans to determine whether they valued time or money more, and how happy they were. A clear majority, 64%, preferred money – but those who valued time were happier. Nor was it only those rich enough to not stress about money who preferred time: after they controlled for income, the effect remained. Older people, married people and parents were more likely to value time, which makes sense: older people have less time left, while those with spouses and kids presumably either cherish time with them, or feel they steal all their time. Or both.






The crucial finding here is that it’s not having more time that makes you happier, but valuing it more. Economists continue to argue about whether money buys happiness – but few doubt that being comfortably off is more pleasant than struggling to make ends meet. This study makes a different point: it implies that even if you’re scraping by, and thus forced to focus on money, you’ll be happier if deep down you know it’s time that’s most important.

It also contains ironic good news for those of us who feel basically secure, moneywise, but horribly pushed for time. If you strongly wish you had more time, as I do, who could accuse you of not valuing it? At least my craving for more time shows that my priorities are in order, and maybe that means I’ll savour any spare time I do get. We talk about scarce time like it’s a bad thing. But scarcity’s what makes us treat things as precious, too.

Saturday 23 April 2016

My perfect affair – how I’m getting away with it

Anonymous as told to Joan McFadden in The Guardian


Tell no one, put nothing in writing, pay in cash, don’t drink, and keep off the phone. How to have an affair for nine years and get away with it


 
‘The first time we slept together, we were like two teenagers, and not in a good way.’ Photograph: Jonathan Storey/Getty Images
Love and happiness are certainly important to me in my 20-year marriage to Stephen. They are also important to me in my nine-year affair with Michael. I didn’t have an affair lightly. I know people have affairs for all sorts of reasons and think ultimately that they have a goal in mind – the end of their marriage, a lasting new relationship or a complete change to what they see as a boring life.

I’m none of these things. I want no drama disrupting my family. I want to stay happily married and carry on my affair and I never, ever want anyone else to know, so I have every detail planned and covered. My husband doesn’t suspect, my sisters and my best friends have no idea and I make sure there’s no evidence at all that can trip me up.

I didn’t start an affair because I’m lacking anything with Stephen. He’s a brilliant dad and funny, intelligent, fit and attractive. We’ve always made an effort to keep things fresh – of course you get bogged down in daily life, but we go out for dinner by ourselves or have a day off when we pack the kids off to school and go back to bed for a few hours. We also do a lot as a family, as well as socialising with friends and enjoying a variety of hobbies, so being organised is vital and, like many working mothers, I keep a meticulous diary to make sure everyone is in the right place at the right time.


I also have a diary in my head of my times with Michael, but I never put anything in writing. No love missives – texts are about the families getting together – and any emails are work related because we work in the same field. Stephen was friends with Michael first, having met him at a school event when our youngest child was just starting. He couldn’t believe we hadn’t met professionally and soon introduced us. He’s completely different from Stephen, who is very forthright, enthusiastic and go-getting while Michael is dreamy and creative, but with an incisive sense of humour and very witty, so they get on well.

I was quite shaken when I started to find Michael attractive. I’m not stupid enough to think you can go through life fancying only one person, but I’d kept any previous little crushes firmly in my head. Stephen is quite a flirt himself and the odd little bit of jealousy never did me any harm, and tended to respark my interest in my husband.

This was different. For the first time since we got married, I could imagine myself having an affair and at first it made me uncomfortable. I started plotting how we could do it and never get found out, and almost convinced myself that I was just being academic about it. Then we all got quite drunk at a party and Michael and I really started flirting. I thought life would go back to normal the next day and it did in front of Stephen and Jane, but we had a completely different relationship when we were alone.

We started talking dirty. At first it was just a little edgy – do you still fancy Stephen/Jane? Ever been unfaithful? Ever thought of it? It got more and more explicit and I couldn’t get him out of my mind. But I got a bad shock when he sent me a filthy text one night. I was sure he was drunk as it was short but very graphic. At that point my conscience was almost clear as we’d done nothing but talk, so I said, “Oh my God, Stephen – Michael’s just sent me a text that’s meant for Jane!”

Stephen thought it was hilarious and I texted back and said, “Isn’t this for Jane? Stephen says lucky her!”

Stephen teased him about it for ages but the next time I was alone with him I was furious and told him never to do something so stupid again. He said he thought I fancied him and I said very calmly that I did, but I wouldn’t risk my marriage or kids for anyone. It took another six months of discussion and planning before the affair started. We agreed that it was to be an added extra to an already strong friendship, but organised calmly and dispassionately, so no one would suspect.

By the time we slept together, we were both in a total state and it was a complete disaster. He’d been to the first day of a conference – I arrived that afternoon and checked into the same hotel. We had three hours in the late afternoon till his flight home and despite all our talk about being calm and dispassionate we were both unbelievably nervous. We were like two teenagers, and not in a good way.

For months I’d been totally turned on every time we were anywhere close to each other, but not now. The sex was clumsy and painful and a couple of times I wondered what the hell I was doing. He had his own worries – it was over far too soon and I felt dissatisfied as well as guilty – and he clearly felt the same. We had another go before he had to rush for his plane and it was just as bad. He said he would text me and I snapped at him not to – had he forgotten all we agreed? Stephen phoned later and in the midst of the chat about the kids asked if Michael was at the conference so I said he’d popped in before he left.

Coming home the next night was hellish. I was sure Stephen could tell I’d had sex with someone else but he was the same as ever and I was pathetically pleased that I was able to enjoy sex with him as normal. It was another two days before I saw Michael again and I was desperate to phone him, despite my rules, though I managed not to. He looked so miserable I was instantly irritated, convinced Jane would have guessed something was up. I was tempted to suggest we just forget it but I didn’t want to make him even more upset so I was reassuring and said we’d sort something out.


We went away for a week’s holiday and I did a lot of thinking. I decided that nerves had made the sex awkward, and once we got over the hump – so to speak – we’d be fine, so I deliberately made plans. Stephen took the kids to the cinema that weekend. I phoned their house, telling Jane I had mislaid papers from the conference and asking if Michael could bring me his so I could copy them. I read one of Stephen’s porn mags to get me in the mood, opened the front door and literally dragged him into the toilet, where we had exactly the sort of sex I’d imagined.

That was the last risk I took. I’m sure no one suspects we’re having an affair. We meet as lovers about twice a month, which probably does keep the magic and anticipation going, but I’m endlessly careful; I do worry about CCTV now as it’s everywhere. We usually meet at a conference hotel or at the airport and I might say to Stephen that I bumped into Michael and had a coffee with him, though I obviously won’t tell him that was after lunch and before sex. We’ve managed to resist that temptation to tell others by talking to each other instead. There are no romantic letters, emails or texts – and because we have fairly constant contact, there’s none of that terrible panic that illicit lovers seem to have about when the next encounter will be.

This care is also my safety net should Michael ever want more. He says he still loves Jane but if he decides otherwise I would just deny everything and there’s no proof. Not a note, credit card bill or hotel receipt – everything is paid by cash – so I’d just walk away.

I wouldn’t be friends with Jane if I didn’t want the smokescreen that provides – we’re too different and there’s a slightly snobbish side to her that irks me, but a monthly coffee or occasional girls’ night makes it seem that we have a separate friendship and so she’s much less likely to suspect anything. She’s even said that I’m good for Michael as he doesn’t have sisters so it’s nice to see him have a friendship with a woman.

I love both men, I’m harming no one and have no intention of doing so. I know we’re being greedy but it’s not affecting anyone else badly. If anything, it enhances my sex life with Stephen and when you’ve got two men seeing you naked you certainly keep yourself fit. I want everything to continue as it is, whereas many people having affairs want something to change, usually other relationships, so they can be together all the time. Strange as it may seem, my biggest worry is that, years on, Michael may die first and I won’t be able to grieve properly, because although the close friendship is known and taken for granted, obviously the affair isn’t. In a matter of fact way, we also assume that, when we’re much older, if our partners die we’ll end up together almost by default. Like everyone else, I’m aiming to live happily ever after, but with both men as part of my life. The only way to make that feasible is to keep everything as tidy as possible.

Perhaps we don’t want to explore the premise that for most people it’s not fidelity and love that keeps them constant to their partner, but fear of potential messiness should they be discovered. How many people, no matter how satisfied with their sex lives and happy with their partners, would say “no thank you” to an explosive sexual encounter if it was guaranteed that they’d never be found out? Domesticity doesn’t do it for everyone long term, no matter how much we’d like it to and although that’s apparent in male behaviour over the centuries now that women are on a par with men, surely this means such potential restlessness applies equally to both sexes?

It takes a very brave person to give an honest response, but, before judging me, ask yourself just one question – what’s stopping you from doing exactly the same?

Thursday 5 November 2015

Unhappy? Welcome to Bhutan – the nation of 90% joy

The Himalayan kingdom of Bhutan was the first to measure happiness as an alternative to GDP. No wonder they’re so pleased


Tim Dowling in The Guardian




News from the International Conference on Gross National Happiness, where Bhutan’s happiness index rose from 0.743 in 2010 to 0.756 in 2015. “Is this fast or slow?” asked Bhutan’s prime minister in his keynote speech. “We do not yet know. We are still learning what is a ‘good’ growth rate!” He sounds jolly.

The notion of GNH was first introduced by Bhutan’s fourth king in the 70s, when he announced that “gross national happiness is more important that gross national product”. The GNH index is a number crunched from happiness survey statistics across nine “domains”, of which only one is living standards. Others include health, education, psychological wellbeing, time use, community vitality and cultural diversity.
GNH is a blend of hard numbers, subjective perceptions and virtually unmeasurable concepts, but it works pretty well in Bhutan, provided you’re not among the 17% of the population – mostly Hindus of Nepalese origin – expelled from the country in the 90s. It’s one way to get your GNH index up – kick out that oppressed minority.

In the last decade the idea of GNH has gained international traction. In the US some states measure the genuine progress indicator, alongside gross state product. In 2012, the UN released a World Happiness report. And the UK’s Office For National Statistics recently started measuring national wellbeing.

There’s nothing wrong with measuring subjective happiness levels – it’s interesting precisely because they’re subjective. Recent GDP improvements brought no corresponding increase British wellbeing. In Bhutan, people’s perceptions of their own health worsened even as healthcare indices improved. Still, 91% of Bhutanese are classed as either narrowly, extensively or deeply happy. Joy-wise it’s roughly on a par with Denmark, even though Bhutan’s adult literacy rate is around 60% and its GDP per capita puts it well below mid-table in world rankings.

Happiness is relative, which means the statistics can be pressed into service by anybody wanting to prove anything, including those who would suggest that spending money to improve people’s lives isn’t worth the bother. I fear that’s where all this wellbeing measurement will lead us. But cheer up – it may never happen.

Sunday 19 April 2015

The surprising downsides of being clever

David Robson BBC Future

If ignorance is bliss, does a high IQ equal misery? Popular opinion would have it so. We tend to think of geniuses as being plagued by existential angst, frustration, and loneliness. Think of Virginia Woolf, Alan Turing, or Lisa Simpson – lone stars, isolated even as they burn their brightest. As Ernest Hemingway wrote: “Happiness in intelligent people is the rarest thing I know.” The harsh truth is that greater intelligence does not equate to wiser decisions — In fact, it can make you more foolish

The question may seem like a trivial matter concerning a select few – but the insights it offers could have ramifications for many. Much of our education system is aimed at improving academic intelligence; although its limits are well known, IQ is still the primary way of measuring cognitive abilities, and we spend millions on brain training and cognitive enhancers that try to improve those scores. But what if the quest for genius is itself a fool’s errand?




Anxiety can be common among the highly intelligent (Credit: Thinkstock)



The first steps to answering these questions were taken almost a century ago, at the height of the American Jazz Age. At the time, the new-fangled IQ test was gaining traction, after proving itself in World War One recruitment centres, and in 1926, psychologist Lewis Terman decided to use it to identify and study a group of gifted children. Combing California’s schools for the creme de la creme, he selected 1,500 pupils with an IQ of 140 or more – 80 of whom had IQs above 170. Together, they became known as the “Termites”, and the highs and lows of their lives are still being studied to this day.

As you might expect, many of the Termites did achieve wealth and fame – most notably Jess Oppenheimer, the writer of the classic 1950s sitcomI Love Lucy. Indeed, by the time his series aired on CBS, the Termites’ average salary was twice that of the average white-collar job. But not all the group met Terman’s expectations – there were many who pursued more “humble” professions such as police officers, seafarers, and typists. For this reason, Terman concluded that “intellect and achievement are far from perfectly correlated”. Nor did their smarts endow personal happiness. Over the course of their lives, levels of divorce, alcoholism and suicide were about the same as the national average.




It's lonely being smart (Credit: Thinkstock)



As the Termites enter their dotage, the moral of their story – that intelligence does not equate to a better life – has been told again and again. At best, a great intellect makes no differences to your life satisfaction; at worst, it can actually mean you are less fulfilled.

That’s not to say that everyone with a high IQ is a tortured genius, as popular culture might suggest – but it is nevertheless puzzling. Why don’t the benefits of sharper intelligence pay off in the long term?

A weighty burden

One possibility is that knowledge of your talents becomes something of a ball and chain. Indeed, during the 1990s, the surviving Termites were asked to look back at the events in their 80-year lifespan. Rather than basking in their successes, many reported that they had been plagued by the sense that they had somehow failed to live up to their youthful expectations.




Early achievers don't always go on to be successful (Credit: Thinkstock)



That sense of burden – particularly when combined with others’ expectations – is a recurring motif for many other gifted children. The most notable, and sad, case concerns the maths prodigy Sufiah Yusof. Enrolled at Oxford University aged 12, she dropped out of her course before taking her finals and started waitressing. She later worked as a call girl, entertaining clients with her ability to recite equations during sexual acts.

Another common complaint, often heard in student bars and internet forums, is that smarter people somehow have a clearer vision of the world’s failings. Whereas the rest of us are blinkered from existential angst, smarter people lay awake agonising over the human condition or other people’s folly.

Constant worrying may, in fact, be a sign of intelligence – but not in the way these armchair philosophers had imagined. Interviewing students on campus about various topics of discussion, Alexander Penney at MacEwan University in Canada found that those with the higher IQ did indeed feel more anxiety throughout the day. Interestingly, most worries were mundane, day-to-day concerns, though; the high-IQ students were far more likely to be replaying an awkward conversation, than asking the “big questions”. “It’s not that their worries were more profound, but they are just worrying more often about more things,” says Penney. “If something negative happened, they thought about it more.”




(Credit: Thinkstock)



Probing more deeply, Penney found that this seemed to correlate with verbal intelligence – the kind tested by word games in IQ tests, compared to prowess at spatial puzzles (which, in fact, seemed to reduce the risk of anxiety). He speculates that greater eloquence might also make you more likely to verbalise anxieties and ruminate over them. It’s not necessarily a disadvantage, though. “Maybe they were problem-solving a bit more than most people,” he says – which might help them to learn from their mistakes.

Mental blind spots

The harsh truth, however, is that greater intelligence does not equate to wiser decisions; in fact, in some cases it might make your choices a little more foolish. Keith Stanovich at the University of Toronto has spent the last decade building tests for rationality, and he has found that fair, unbiased decision-making is largely independent of IQ. Consider the “my-side bias” – our tendency to be highly selective in the information we collect so that it reinforces our previous attitudes. The more enlightened approach would be to leave your assumptions at the door as you build your argument – but Stanovich found that smarter people are almost no more likely to do so than people with distinctly average IQs.

That’s not all. People who ace standard cognitive tests are in fact slightly more likely to have a “bias blind spot”. That is, they are less able to see their own flaws, even when though they are quite capable of criticising the foibles of others. And they have a greater tendency to fall for the“gambler’s fallacy” – the idea that if a tossed coin turns heads 10 times, it will be more likely to fall tails on the 11th. The fallacy has been the ruination of roulette players planning for a red after a string of blacks, and it can also lead stock investors to sell their shares before they reach peak value – in the belief that their luck has to run out sooner or later.




Members of high IQ society Mensa are not immune to belief in the paranormal (Credit: Thinkstock)



A tendency to rely on gut instincts rather than rational thought might also explain why a surprisingly high number of Mensa members believe in the paranormal; or why someone with an IQ of 140 is about twice as likely to max out their credit card.

Indeed, Stanovich sees these biases in every strata of society. “There is plenty of dysrationalia – people doing irrational things despite more than adequate intelligence – in our world today,” he says. “The people pushing the anti-vaccination meme on parents and spreading misinformation on websites are generally of more than average intelligence and education.” Clearly, clever people can be dangerously, and foolishly, misguided.




People with an IQ above 140 are twice as likely to overspend on their credit card (Credit: Thinkstock)



So if intelligence doesn’t lead to rational decisions and a better life, what does? Igor Grossmann, at the University of Waterloo in Canada, thinks we need to turn our minds to an age-old concept: “wisdom”. His approach is more scientific that it might at first sound. “The concept of wisdom has an ethereal quality to it,” he admits. “But if you look at the lay definition of wisdom, many people would agree it’s the idea of someone who can make good unbiased judgement.”

In one experiment, Grossmann presented his volunteers with different social dilemmas – ranging from what to do about the war in Crimea to heartfelt crises disclosed to Dear Abby, the Washington Post’s agony aunt. As the volunteers talked, a panel of psychologists judged their reasoning and weakness to bias: whether it was a rounded argument, whether the candidates were ready to admit the limits of their knowledge – their “intellectual humility” – and whether they were ignoring important details that didn’t fit their theory.




High achievers tend to lament opportunities missed in their lives (Credit: Thinkstock)



High scores turned out to predict greater life satisfaction, relationship quality, and, crucially, reduced anxiety and rumination – all the qualities that seem to be absent in classically smart people. Wiser reasoning even seemed to ensure a longer life – those with the higher scores were less likely to die over intervening years. Crucially, Grossmann found that IQ was not related to any of these measures, and certainly didn’t predict greater wisdom. “People who are very sharp may generate, very quickly, arguments [for] why their claims are the correct ones – but may do it in a very biased fashion.”

Learnt wisdom

In the future, employers may well begin to start testing these abilities in place of IQ; Google has already announced that it plans to screen candidates for qualities like intellectual humility, rather than sheer cognitive prowess.

Fortunately, wisdom is probably not set in stone – whatever your IQ score. “I’m a strong believer that wisdom can be trained,” says Grossmann. He points out that we often find it easier to leave our biases behind when we consider other people, rather than ourselves. Along these lines, he has found that simply talking through your problems in the third person (“he” or “she”, rather than “I”) helps create the necessary emotional distance, reducing your prejudices and leading to wiser arguments. Hopefully, more research will suggest many similar tricks.

The challenge will be getting people to admit their own foibles. If you’ve been able to rest on the laurels of your intelligence all your life, it could be very hard to accept that it has been blinding your judgement. As Socrates had it: the wisest person really may be the one who can admit he knows nothing.

Friday 21 November 2014

GDP is a mirror on the markets. It must not rule our lives

By fixating on a snapshot of statistics, we focus on short-termism and lose sight of what the Victorians prized most: value

male office worker looking through binoculars
'What is the point of economic growth if it does not make most people better off?' Photograph: Colorblind/Getty Images

Next month the Office for National Statistics will issue data for the first time on the UK’s wellbeing. In the exercise, the ONS is recognising that GDP, which now includes estimates for the market value of illegal drugs and prostitution, is at best only a partial measure of our economic health. Not that one would draw this conclusion from the political tub-thumping that improved GDP figures bring.
GDP is a measure of economic activity in the market and in the moment. So its key shortcoming is that it collapses time and makes us short-term in focus. It counts investment and consumption in the same way – an extra £100 spent on education is equivalent to the same amount spent on fizzy drinks.

-----Also read

Economic Growth: the destructive god that can never be appeased




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Studies have repeatedly shown that the time horizon of the financial markets in particular is ever more short-term. Shaving about 0.006 seconds off the time it takes computer orders to travel from Chicago to the New Jersey data centre which houses the Nasdaq servers made it worth investing several hundred million dollars in tunnelling through a mountain range to lay the fibre optic cable in a straighter line. More than two-thirds of trades in US equity markets are high-frequency automated orders. How has the search for profit so foreshortened our vision?
It wasn’t always so. The term “Victorian values” now speaks to us of characteristics such as narrow-mindedness, hypocrisy and conformity, but it could also speak of hard work, self-improvement and above all self-sacrifice for the future. The list of the Victorians’ investments in our future is staggering. It includes railways, canals, sewers and roads; town halls and libraries, schools and concert halls, monuments and museums, modern hospitals and the profession of nursing; learned societies, the police, trades unions, mutual insurers and building societies – organisations that have often survived more than a century.
Why the Victorians managed to be so visionary is not entirely clear, but it had something to do with the confidence of an age of discovery both in science and other areas of knowledge, and also in geographical exploration and empire building. They made such strides against ignorance and the unknown, firm in their sense of divine approbation, it seems a belief in progress came naturally to them.
Civic and business leaders in the late 19th century had extraordinary confidence and far-sightedness, even as they too stood at the centre of social and economic upheaval. This Victorian sense of stewardship is something we could usefully remind ourselves of when thinking about how we measure value today. In the late 19th century it was the innovators and the builders of institutions who had standing, and it was the men and women of vision who were understood to be the creators of value.
They still are, even if it is often hard to measure or quantify what they build. Anything of value has its roots in values and vision, as much today as at any time in the past.
Financial markets have their place as a powerful way of harnessing incentives to achieve desirable outcomes. For example, the market in the US for trading permissions to emit sulphur dioxide, which helps cause acid rain, has been a triumphant success in removing what was once a serious environmental harm.
However, there is no sign that the wider public has stopped challenging the ascendancy of markets and money. The bestseller status of Thomas Piketty’s Capital in the 21st Century bears witness to that. It has put the question of the great inequality of wealth in the market economies at the centre of public debate, and it underlines another question: what is the point of economic growth if it does not make most people better off? Or, worse, if growth is actually destroying things that many of us value.
A further problem with GDP is that it obviously includes many things that are value-destroying. Natural disasters are good for GDP growth because of the reconstruction boom afterwards; the destruction of assets and human life is not counted. The metric ignores the depletion of resources, the loss of biodiversity, the impact of congestion, and the loss of social connection in the modern market economy.
People have long proposed alternative measures of progress – recently, environment-adjusted measures, or simply measuring happiness, directly by survey. What could be more straightforward than asking such a direct question? But reported happiness changes very little over time because, whether it’s the joy of a lottery win or the catastrophe of being disabled in an accident, it only takes about two years for people experiencing even a dramatic change in their life to revert to previous levels of happiness.
This takes us back to monetary measures, back to GDP and its inclusion of things that clearly have negative value. It also excludes “informal” activities such as housework and caring, many volunteer activities, and always excludes the full value of innovations. Nathan Mayer Rothschild was the richest man in the world at the time of his death from an infected tooth abscess in 1836. An antibiotic that hadn’t then been invented but now costs just $10 would have saved him. How much would he have paid for that medicine?