EASTERLIN’S PARADOX AS A NEW PRINCIPLE OF THE STATE STRATEGIC PLANNING

Abstract

The article raises the question of the inverse relationship between the level of income of citizens and their level of satisfaction with life (level of happiness), which was called Easterlin's paradox. At the same time, the effects on which this paradox is based are analyzed - the saturation effect and the effect of income change. Also, the authors of the article cite the results of research by scientists who criticized this paradox, present and analyze statistical data – the relationship between the level of income and the level of happiness – using the example of Great Britain, Australia, China, countries of Sub-Saharan Africa and some Scandinavian countries. On the basis of the conducted research, the conclusion is formed that Easterlin's paradox is mostly manifested in highly developed countries, because in the countries with a low level of development, due to the increase in the level of income, individuals still have the opportunity to provide themselves with more comfort and a higher quality of life, which positively affects their level of happiness. However, the question arises that Easterlin's paradox also does not work for some highly developed countries, especially the Scandinavian countries. The authors of the article explain this situation by the existence of a number of other factors that affect the level of happiness of the population of these countries: equal distribution of income, access to education and health care, a high level of social justice, social protection, social support, equality in society, environmental sustainability, etc. At the same time, the article examines the forms of manifestation of Easterlin's paradox at the modern stage – stress and anxiety at the workplace, which reduce the level of happiness of an individual when his income increases, as well as compensating the feeling of happiness by increasing consumption. The authors pay special attention to the justification of the importance of the Easterlin’s paradox in the state strategic planning and economic policy, examples of the consideration of this paradox in state strategic planning in Bhutan, Canada, and New Zealand are given.