Economics Quote by Richard Layard
““It is actually a rather sorry tale. In the late nineteenth century most English economists thought that economics was about happiness. They thought of a persons happiness as in principle measurable, like temperature, and they thought we could compare one persons happiness with anothers. They also assumed that extra income brought less and less extra happiness as a person got richer.””
About This Quote
Source Speech: Lecture on Happiness Economics, 1990s
Economists once treated happiness as a measurable quantity, assuming diminishing returns of income on well‑being.
In simple terms: Happiness was seen as a temperature‑like metric, with income adding less joy as wealth grows.
Key Takeaway
Recognize limits of income for happiness.
Themes
economics
well‑being
measurement
inequality
Mood
analytical
reflective
Type
explanatory
philosophical
When to use this quote
- policy design
- personal finance
- public health
- social research
Key Concepts
utility theory
diminishing marginal utility
subjective well‑being
Questions to Reflect On
- How do we measure happiness beyond income?
- What policies can improve well‑being without raising income?
A Different Perspective
Income alone cannot guarantee lasting happiness.
