Insight by Psychology
Shocks to national mood can become self-sustaining because when public mood falls people stop showing happiness, which reinforces the low mood and creates an attractor that slows recovery.
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See all →Economic growth gives durable wellbeing gains because material improvements from higher per-capita GDP persist across administrations and accumulate over centuries, making them hard to reverse with short-term political shifts.
Differences in happiness between countries with similar incomes arise from culture and institutions because the log(income) relationship has wide error margins, so non-income factors can shift national happiness substantially above or below the income prediction.
