Can Government Increase My Happiness: Transition Countries

Countries transitioning from socialism to capitalism since the early 1990s demonstrate that government can increase happiness. Under socialism, happiness in these countries was generally high, because government policy directly addressed the personal concerns most important for happiness. In the typical household, both spouses worked, career paths were set, and families were formed and raised with a widespread social safety net—housing, health-care, childcare, and retirement arrangements assured. The transition to capitalism left many families in turmoil, seeking to cope with new family responsibilities, while job opportunities and social support were left to the vicissitudes of the free market. Life satisfaction plunged along with output and employment. The ensuing economic restructuring was accompanied by a gradual recovery and improvements in employment and the social safety net. Life satisfaction got slowly better, but even today in most transition countries, it is not yet back to where it was before the shift to free markets. The lesson of the transition countries is that government policies can increase happiness and particularly that employment and safety net policies are of fundamental importance to accomplish this.