Are the poor happier than the rich?

An article by Arun Maira, former member of the Planning Commission asks a very pertinent question: What we really want? He says that concentrating solely on accelerating the growth of the GDP of India would be a mistake. For instance, India has 10 cars per 1000 people while Korea has 300 and the US has 600. What would happen if the number of cars in India were to increase 30 times to reach the level of Korea? More cars would cause more accidents and more pollution, leading to higher medical costs, higher clean-up costs and higher litigation costs, all of which would lead to a higher GDP, because GDP is a measure of gross economic activity, without distinguishing between good and bad. There are many things that cannot be measured by monetary means and yet increase a nation's well-being, such as dignity, trust in one's neighbors and a sense of fairness. Bhutan has pioneered an index of Gross National Happiness which elevates satisfaction felt by citizens above that of material wealth. India ranks a lowly 111 on this index, below Pakistan and Bangladesh. But could it be that people in India are unhappy because they do not possess cars or are unable to fly because they cannot afford to? It is instructive that the top 10 countries on the list are all rich western countries, Australia coming in at number 10 with its vast mineral wealth. Mr Maira cites the example of the French who work fewer hours and take longer vacations and asks would the world be a better place if the productivity of the French increased to the level of the Americans? The unemployment level in France is 10.4%, while it is 25.4% for those under the age of 25 years. In the US the rate is 5.6%. Trouble is that you need people to work to pay taxes which can finance welfare payments. The higher the productivity the more the taxes that accrue. Socialist policies breed a sense of entitlement in those who have jobs, who restrict competition, to hang on to their perks. The French would rather close down a factory than lose their privileges. In the long run it destroys the economy, reduces employment and reduces the power of the trade unions by decreasing the number of members. Which is what happened in Bengal. If everyone would be happy with a minimalist existence then the hippie culture would not die down. A comparison of the weekly food shopping in countries across the world shows that happiness cannot buy food, money does. A family in Germany spends 320 pounds sterling on food every week, in Luxembourg it is 298 pounds, in India it is 25 pounds while in Bhutan it is a meager 3 pounds 20 pence per week. The quantity of food depends on Purchasing Power Parity but even so the comparison is glaring. Surely, it is better to be a well-fed rich than a happy poor.