Much of modern economic theory is based around a simple idea: Human beings maximize utility. But what is utility? Many people think of it as happiness or pleasure; British philosopher Jeremy Bentham, the inventor of utilitarianism, conceived of it this way. But this isn’t how modern economists think of the concept. To an economist, utility simply means how much people want something. If an economist observes people working hard and making sacrifices to buy houses, then the conclusion is that houses must have lots of utility to those people.
Modern economists tend to assume that utility is good — that people should get what they want. When economists talk about the notion of consumer surplus, they just mean the utility that consumers derive from getting a good deal on consumer goods. Welfare economics, which deals with the question of how much the economy benefits humanity, often conceives of social welfare as a function of the extent to which people satisfy their wants. More egalitarian economists will tend to value the utility of the poor and disadvantaged more than the utility of the wealthy, but fundamentally it’s still about giving people what they desire.
There are certainly reasons to criticize this philosophical approach. First of all, people sometimes make choices they come to regret. Smokers know they should quit now, but they put it off and years later end up wishing they had shown a little more fortitude. So should society care about people’s present selves, or their future selves? This question is very important when discussing whether to ban electronic cigarettes. If Juul Labs and other vape makers get young people hooked on nicotine in ways that they’ll later wish they hadn’t, it might make sense for government to bar those people from satisfying their wants.
But there are deeper reasons to question whether society should just feed human desires all the time. Bentham’s utilitarianism conceived of a good society as one that makes its people happy. But what if the things people desire don’t bring them happiness?
There’s no clear consensus on how to measure happiness. Some neuroscientists have tried to link it to various measures of brain activity. But economists tend to use a method that’s a lot cheaper and quicker — they send out surveys and questionnaires asking people how happy they are.
Happiness research has led to some surprising and troubling discoveries. People seem to reliably seek out a few things that make them unhappy.
One of these things is Facebook, by far the world’s largest social-networking site. In a 2019 paper, economists Hunt Allcott, Luca Braghieri, Sarah Eichmeyer and Matthew Gentzkow investigated how much money they had to pay Facebook users in order to get them to deactivate the Facebook app for one or two months. They found that the median amount was $100, and the average was $180 (the latter being larger because a few users really loved Facebook).
This suggests that Facebook, which is free to use, generates a huge amount of utility — more than $370 billion a year in consumer surplus in the U.S. alone. This bolsters the argument of those who believe that free digital services have added a lot of unmeasured output to the global economy.
But Allcott et al. also found that the people who deactivated Facebook as part of the experiment were happier afterward, reporting higher levels of life satisfaction and lower levels of depression and anxiety. The change was modest but significant — equal to about 25 to 40 percent of the beneficial effect typically reported for psychotherapy.
Why are people willing to pay so much money for something that reduces their happiness? One possibility is that social media acts like an addictive drug — in fact, the people Allcott et al. paid to deactivate Facebook ended up using it less after the experiment was over. But another possibility is that people use services like Facebook because they’re compelled by motivations other than the pursuit of happiness.
Another example of the disconnect between happiness and utility might be commuting time. Economists and other happiness researchers consistently find that longer commutes are associated with unhappiness. Yet people still pay quite a lot to live in far-flung exurbs. Economist Robert H. Frank has found that the larger houses that come with exurban life don’t compensate for the longer commute times in terms of happiness. House size and commute time aren’t the only factor in the choice of what neighborhood to live in, but this might be another case like Facebook where things that bring utility don’t bring happiness.
There may be a number of such cases. A paper by economists Daniel J. Benjamin, Ori Heffetz, Miles S. Kimball, and Alex Rees-Jones found that on surveys, people usually predict that the things they say they’d pay money for would also boost their happiness — but not always.
So what should society do about the disconnect between utility and happiness? The question raises the thorny issue of paternalism and whether it’s government’s role to push people to do things they don’t want to do, simply because they might be happier as a result. Basing policy on happiness surveys might also be a mistake if these surveys aren’t good measures of true happiness. Such surveys might reflect cultural expectations of what people think they ought to say, or people could gradually lose their ability to gauge how much happier or sadder they are now than they were in the past.
But it also unwise to simply dismiss the disconnect between happiness and utility simply because happiness is hard to measure. If people are consistently making mistakes that lead to a less happy society, it’s a problem that should be addressed. Bentham and the original utilitarians would demand no less.
Noah Smith is a Bloomberg Opinion columnist. He was an assistant professor of finance at Stony Brook University, and he blogs at Noahpinion.
Original article here




Don Giovanni – the protagonist of Mozart’s opera Don Giovanni (1787), a legendary seducer who is also sometimes known as Don Juan – is, Kierkegaard suggested, the ultimate archetype of the aesthetic mode because he lives for immediate sexual gratification and sensuality. Don Giovanni is a player. He is handsome, seductive and exciting. Women find him irresistible: he has slept with more than 2,000 women whose names he records in his not-so-little black book. Don Giovanni seeks pleasure above all else, and dances through his hedonistic life.
Kierkegaard’s leap was guided by the commandment to ‘love thy neighbour’. In Works of Love(1847), written under Kierkegaard’s real name, he proposes that universal love, or agapē, is the secret to happiness because it overcomes the fleetingness and insecurity of aesthetic and ethical relationships. Love is Ariadne’s thread of life because, as long as you love, as long as you commit yourself to being a loving person, you’ll be safe from being hurt and alone. Kierkegaard thought that this sort of unwavering faith reflects a supremely developed human being.
We are all storytellers; we make sense out of the world by telling stories. And science is a great source of stories. Not so, you might argue. Science is an objective collection and interpretation of data. I completely agree. At the level of the study of purely physical phenomena, science is the only reliable method for establishing the facts of the world.
I’ve been studying, teaching, coaching and writing about transformation for the last 35 years. It fascinates me … always has, even as teenager. How can someone fulfill their potential and become the best of themselves in life?
I finally realised joy in my life and began to play with effortless abundance. I laugh a lot now and am breathtaken by the beauty of this world and the people and life forms in it. I am undefinable, ever morphing into the next new levels of what is possible for me and for us all. As I do this I realise that I am part of the redesign of what it is is to be human on Earth. I call us Earthians as a new way to talk about loving being alive on Earth while being an infinite creator of possibilities for life. The term Earthian also allows me to feel a kinship with other life forms on Earth, whereas the term human tends, in my view, to make us feel separate from other inhabitants of this wonderful world.



The belief that everything in the universe is part of the same fundamental whole exists throughout many cultures and philosophical, religious, spiritual, and scientific traditions, as captured by the phrase ‘all that is.’ The Nobel winner Erwin Schrodinger once observed that quantum physics is compatible with the notion that there is indeed a basic oneness of the universe. Therefore, despite it seeming as though the world is full of many divisions, many people throughout the course of human history and even today truly believe that individual things are part of some fundamental entity.

