(Image Source: The Inquisitr)

 

BY LOGAN TITTLE

 

Economists are starting to learn that money might not actually buy happiness. Federal Reserve Chairman Ben Bernanke dropped some pretty deep thoughts on the International Association for Research in Income and Wealth at conference in Massachusetts Monday. Here’s WTOL.

 

“Bernanke says that gauging happiness can be as important for measuring economic progress as determining whether inflation is low or unemployment high and while recent reports showing the economy is recovering, its not telling the entire story.”

 

In Bernanke’s pursuit of happiness he spoke less about numbers and more about philosophy noting that textbooks describe economics as “the study of the allocation of scarce resources”—but there’s more to it, he explains on the Fed’s own website.

 

“That definition may indeed be the ‘what,’ but it certainly is not the ‘why.’ The ultimate purpose of economics, of course, is to understand and promote the enhancement of well-being.”

 

Bernanke goes on to say that not only is measuring well-being important, but also finding out what determines it. A writer for Bloomberg Businessweek says Bernanke may have caught economists off guard by asking the ever-so-common question of “why?”

 

“Those numbers mean things to humans. They mean satisfaction, the ability to live within means. They mean happiness. These kinds of words make economists uncomfortable. Happiness resists measurement. When things cannot be measured, they cannot be modeled, and if economists aren’t using models, then they aren’t scientists.”

 

But this concept could have been under economists noses the whole time. KTBC reports very recent numbers can serve as a perfect example of what Bernanke was talking about.

 

“The labor department reported last friday 163,000 jobs were added in July,but 155,000 Americans simply gave up hope looking for jobs all together and unemployment rose to 8-point-3 percent...”

 

So—if money won’t buy you a hefty bag of happiness, what will? The Los Angeles Times says Bernanke may not have an answer just yet, but two years ago the Fed Chairman spoke at the University of South Carolina and told listeners he already has a few factors to look out for.

 

“...a strong sense of support from belonging to a family or core group and a broader community, a sense of control over one's life, a feeling of confidence or optimism about the future and an ability to adapt to changing circumstances.”

 

The Associated Press reports the Federal Reserve is considering surveys to better measure happiness as a means of economic progress and stability.

Bernanke: Economy Tied To Americans' Happiness

by Logan Tittle
0
Transcript
Aug 7, 2012

Bernanke: Economy Tied To Americans' Happiness

 

(Image Source: The Inquisitr)

 

BY LOGAN TITTLE

 

Economists are starting to learn that money might not actually buy happiness. Federal Reserve Chairman Ben Bernanke dropped some pretty deep thoughts on the International Association for Research in Income and Wealth at conference in Massachusetts Monday. Here’s WTOL.

 

“Bernanke says that gauging happiness can be as important for measuring economic progress as determining whether inflation is low or unemployment high and while recent reports showing the economy is recovering, its not telling the entire story.”

 

In Bernanke’s pursuit of happiness he spoke less about numbers and more about philosophy noting that textbooks describe economics as “the study of the allocation of scarce resources”—but there’s more to it, he explains on the Fed’s own website.

 

“That definition may indeed be the ‘what,’ but it certainly is not the ‘why.’ The ultimate purpose of economics, of course, is to understand and promote the enhancement of well-being.”

 

Bernanke goes on to say that not only is measuring well-being important, but also finding out what determines it. A writer for Bloomberg Businessweek says Bernanke may have caught economists off guard by asking the ever-so-common question of “why?”

 

“Those numbers mean things to humans. They mean satisfaction, the ability to live within means. They mean happiness. These kinds of words make economists uncomfortable. Happiness resists measurement. When things cannot be measured, they cannot be modeled, and if economists aren’t using models, then they aren’t scientists.”

 

But this concept could have been under economists noses the whole time. KTBC reports very recent numbers can serve as a perfect example of what Bernanke was talking about.

 

“The labor department reported last friday 163,000 jobs were added in July,but 155,000 Americans simply gave up hope looking for jobs all together and unemployment rose to 8-point-3 percent...”

 

So—if money won’t buy you a hefty bag of happiness, what will? The Los Angeles Times says Bernanke may not have an answer just yet, but two years ago the Fed Chairman spoke at the University of South Carolina and told listeners he already has a few factors to look out for.

 

“...a strong sense of support from belonging to a family or core group and a broader community, a sense of control over one's life, a feeling of confidence or optimism about the future and an ability to adapt to changing circumstances.”

 

The Associated Press reports the Federal Reserve is considering surveys to better measure happiness as a means of economic progress and stability.

View More
Comments
Newsy
www1