Concept of Happiness

Generally, happiness is how much a person judges the overall quality of his/her possess life-as-a-whole favorably in other words, how enormously person likes the life they lead. (Veenhoven, 2015). Happiness for oneself or for others is the ultimate object behand rationality of individuals. We make money to buy things we need (goods); we consume these possessions or goods to stay alive and to enjoy life; we enjoy life to get happiness; we want happiness for its own sake. It is the ultimate end; it is valuable for the individual (Yew-Kwang, 2015). The relationship between economic factors and happiness has lately been studied thorough both economics side and psychological side, this relationship seems to be multipart as the findings unlikely to be the same within the nation or between the nations, however, literature on personal income, show small different but significant correlations within countries (Gudmundsdottir, 2011). Gallup World, Poll researchers analyzed the relationship between happiness and household wage, they found that in each country around the world, after accounting for a persons age, gender, and marital status, people with higher wage are happier than those with low-income (Dan, 2018). Easterlin (2001) study reaffirmed that, Pattern of change in material aspiration over life cycle some of the confusing relationship between subject well-being and wage (Easterlin, 2001), Hence Vincent says, money is a fundamental part of human life that is consistent throughout the world and wealth is correlated to positive outcome in life, it has been observed that, typically, individuals with higher pay have better physical and mental wellbeing compared to low-income, they\’re more noteworthy longevity and experience a less stressful life event (Vincent). 2.2 Conceptual Referent Theories. There are various conceptions of happiness. Each one of these disciplines, has demonstrated happiness and aspects that determine happiness in deferent ways, financial matters, health matters and relationship matters has given some logical definition of happiness, in my work, I consider four vital speculations of happiness, which have been defined in the earlier years work: hedonism utilitarianism, the desire theories, the objective list theories, and the life satisfaction theories. According to Hedonists, well-being consists of the greatest balance of pleasure over pain Sentiments of delight or joy are the ultimate point of conduct. So each activity that brings joy is right. Pleasure is the enjoyment of goods that provide comfort; it is the satisfaction of all human needs and wants. (Simona Tenaglia. University of Tor
Vergata). Mill Says, pleasure, and liberty from pain are the only things that are desirable as ends, and that everything that is desirable at all is so either, for the delight characteristic in it or as a implies to the advancement of delight and the anticipation of torment. (Mill (2017).However, desire theory holds says that, a happy person is one who gets what they want. Simply put, if your desires are satisfied, you will be happy and so is your Life. (Seligman & Royzman, 2003). The simplest form of a desire theory is the present needs are met, according to this theory, someone is made better off to the extent that all his current desires are fulfilled. What is the matter to a person\’s well-being is his overall level of desire and level of satisfaction with life as a whole. This theory proposes that the more desire-fulfilment in life, the better individual gain happiness (University of Tor Vergata). Objective list theory emphasized on things that hold more value, things that have more meaning, like health and wellness, good relationships, strong faith, charity and altruism, career accomplishments, personal dreams coming true. A happy person is not one who simply acts happy or doesnt experience pain, nor a happy person simply someone who gets what they want all the time objective list theory does not agree with the point that a happy person can be view base on pleasure versus pain or wanting versus attaining. Instead, because, a happy person can be one who is poor, ill, and even lonely, but if they have a purpose of a greater good, then they can, in fact, be happy and have a happy life. (Seligman & Royzman, 2003). Life satisfaction theory talks about the overall quality of life, the degree in which an individual emphatically assessed through consistence favorable attitude towards individual life. It is intended as something personifying a total judgment about ones life taken as a whole. all things can be considered, as central to life satisfaction. Sumner (1996) says life satisfaction is a positive assessment of the conditions of ones life, through a judgment that yields a positive result by comparing ones actual situations with his standards and expectations. (Tenaglia, 2014).Satisfactionism, tells us that achieving what we need makes our lives go well, maybe a condition whereby ones life goes well to the degree that the wants are satisfied. However, wellbeing is about lives going well, about positive feelings and functions, health and happiness, it is a situation that permits individuals, groups, or societies to thrive and flourish. Subjective wellbeing refers to people\’s evaluations of their lives, assessments that are both effective and cognitive where the successful portion is better known as happiness and the cognitive as life satisfaction. (Gudmundsdottir, 2013) Economic factors such as income or employment are important goals for a good life, individual and social. Wealthier people usually enjoy better health, longer lifespans, lower infant mortality rates and greater access to goods, services, and education. In general, they have the freedom to choose, those who possess more are happier than who possess less. (Bruni and Porta, 2016). Economic wellbeing has a part to play in an individuals over the whole sense of well-being. Well-being is inuenced by the management of multipart combined capabilities and resources, which incorporate both material and social assets. The choices that individuals make about their nancial lives can have a varied impact on their overall happiness, it can have also a negative impact on the well-being of vulnerable groups. (Gudmundsdottir, 2013) 2.3 Recession affects income and consumption behaviour of the low-income group. The recession led to inflation which reduces real household disposable income, As a result, the real spending power of household incomes turning negative and therefore the saving ratio falls as such affect economic well-being of low income. (Office for National Statistics, 2011). Therefore, Increases in basic costs, which result from a retreat, counting rising costs and decreased salaries, inuence the behaviors that people adjust to managing with expanded outgoings while living on a limited wage, being worried about being unable to allocate resources to these types of costs is a challenge to many low-income groups\”, (Silverstein & Parker 2002). However, the absolute income hypothesis understands well-being mainly through access to material goods and consumption\” (Bruni & Porta, 2007), assumes that income and life satisfaction are directly and causally linked as higher incomes increase the possibility to purchase goods and services according to one´s personal preferences leading to higher satisfaction (Mikko, 217). Darity and Goldsmith explained from the individual point of view, unemployment affects every aspect of happiness, including positive affect, life satisfaction and negative affect (Tenaglia, 2005). He also added, that there is a concern on non-essential living costs related to lifestyle choices that individuals make, including hobbies, eating out and holidays. It shows that these are confined due to the costs involved, might be affected adversely overall physical, mental and social well-being.Therefore, economic recession has an impact on lifestyle choices that low-income people make, particularly in non-essential items, resulting in a reduction in or loss of leisure activities, which may have a negative impact in increased isolation and decreased levels of well-being. (Silverstein & Parker 2002). However, many economists think that higher income leads to higher happiness. There is a reasonable explanation for this conclusion: a higher income expands individuals opportunity set. But psychologists are not so confident that higher income leads to higher happiness. In studies made on individuals who won the state lottery (Brickman, 1978), it resulted that the winners of the previous years had reported an only slightly higher level of satisfaction respect to the control group, and were less happy of everyday events. Even some economists dont share the idea that higher income produces higher happiness, some argued that increasing income and consumption dont bring happiness. Considering the relation between income and happiness among nations, from a consideration of Inkeles and Diamond (1986) develops that there\’s a rise in individual satisfaction with the level of economic development of the countries. This relationship between the wealth of the country and average happiness demonstrate a positive and strong correlation. (Tenaglia, 2005). One of the curious conclusions, from the economists point of view, is how compelling non-financial factors show up to be in human welfare. Work and conjugal status factors have expansive and well-defined impacts. The idea that income buys happiness is one of the assumptions made without evidence but rather for deductive reasons the non-economic variables in happiness equations enter with large coefficients, relative to that on income. He also asserted that wealthier individuals are efficiently more satisfied with their lives (Blanchlower & Oswald, 2000). From the first point of view of Tenaglia (2005), says within country relation, people who live in the same country and with different income are compared in a certain moment. It seems that individuals with higher salary have more opportunities to purchase merchandise and services which they have a better status in society. Large test results show that happiness and wage are emphatically related. Easterlin (2000) and Di Tella (1999) find that there is a positive correlation between happiness and income. An individual utility may also depend on both income and leisure because individuals are assumed to have been carrying nominal money balances for transactions purposes, something that is negatively affected by the level of inflation. The rise in GDP per capita over the sample period increased average happiness by 0.15 utils. The drop in the inflation rate and an increased Life expectancy increased happiness. (Tella and MacCulloch, 2008) The study of Shama (1978) found that in consumption most people are negatively affected by the economic crisis. The study also found that due to increasing prices (inflation) associated with the crisis, households are more difficult to keep their standard of living, while increasing financial uncertainty cause difficulties in making an appropriate financial plan. Tella and MacCulloch, say, in relative terms, the increase in income per capita has been one of the biggest contributors to raising happiness. On the negative side, the largest adverse effect derived from the rise in unemployment in Europe it subtracted 0.14 utils from happiness, this could be thought of as the fear effect that hurts everyone in the economy when there is a downturn. It does not include the costs to the individuals who have actually lost their jobs. The rise in unemployment has exactly offset the gains in happiness from higher GDP per capita. It has also more than canceled out the gains in happiness experienced due to lower inflation rates. Rising family instability, proxies by the Divorce rate, lowered happiness and higher crimes rates. The supreme wage theory gets its well-being primarily through fabric merchandise and utilization. The assumption that income and life satisfaction are directly and causally linked as higher incomes increase the possibility to purchase goods and services according to one´s personal preferences leading to higher satisfaction Mikko (2017) On a more, individual or household level, people react to economic shocks most basically by either stopping to consume certain goods, reducing purchases or buying different goods, prolong certain purchases and use some goods longer. In an early attempt to model consumer reactions to the economic crisis from a marketing perspective during the financial downturn, both buyer status and desires concerning work, salary, items, and services and costs impact customer convictions and behavior. Due to decreased income and caution to be more responsible with spending, consumers change their behavioral patterns: they become less wasteful, judge products and services in a different way, are more comparative in shopping (Shama (1978). A later study by Ang (2001) also mentions how household becomes more calculative in their spending and become more careful in spending their income. Another effect indicates during the period of economic crisis, consumers change their perception of the products in the priority of product attributes to be considered in buying decision, with an aim to prolong the useful time of the product (Shuv-Ami 1979). Unfortunately, spending in a recession is adversely affected because of the eroding purchasing power of most people. For example, a survey revealed that 48% said their households current financial situation in the US was worse in the period of the 2008-2009 recession than it was before the recession started (Pew Research Centre, 2010). Zulu, (2011) in some poor households, recession significantly affects the quantity of food available at home. The survey by WIEGO showed that some poor households reduced the number of meals from three times a day to two times and some from two times to once. Others did away with meat and milk from their meals and replaced them with relatively cheaper items such as eggs and offal. In some instances, adults abandoned little food at home for their children (Aminu, 2018). 2.4 Causes of Recession. Lee Ann (2012) find out in her study, that there is a concern linked to the fear of debt, and, reluctance to borrow money, and the inability to pay bills during recession among the low-income group in the UK. Many describe how they just about cover their weekly bills but would be pushed into debt by unexpected costs. This means cutting back purchasing new clothes reducing house utility use and cut back at times such as Christmas and birthdays, which can adversely affect their sense of mental well-being. Looking at the relationship between joy, as subjective well-being, and wage in a more worldwide view, the Easterlin paradox says, it can be observed that individuals with a better wage are more likely to be happy than individuals with a lower pay since they have sufficient sum of cash to meet their fundamental needs. (Stappen, 2011) A certain level of salary is basic for covering essential needs such as shield, food, and clothing. (Mikko, 217). Diener and Seligman (2004) contend that an increment in salary is inevitably associated with an increment in prosperity. According to this statement, individuals adjust to a specific certain level of wealth and wealthy individuals are only to some degree happier than poor people in wealthy nations. Another explanation can be found in the theory of hedonic adaptation which suggests that both positive and negative experiences fade with time. (e.g., Diener and Easterlin 2006). Recent studies also show that economic factors are associated with different aspects of wellbeing. Satisfaction with life is more strongly connected with economic factors like income whereas happiness is more influenced by social relationships (Diener, Kahneman and Deaton 2009/2010). Kahneman and Deaton (2010) conclude that money buys life fulfillment but not happiness. The larger part of studies on the subject have investigated the popular question of whether money can buy happiness, or in other words, whether increased wage increases happiness. If there\’s a causal relationship between wage and happiness, a diminish in wage should too lead to a decrease in happiness. The effect of diminished income on happiness has barely been considered but through the drop. There may be a common conviction that financial crisis will lead to a diminish in prosperity and increase in mental disorders . The World Wellbeing Association (WHO 2009) has cautioned that the financial crisis may lead to increased stress, suicide, and mental disorders and those who will be the primary to endure are poorest and other vulnerable groups. (Gudmundsdottir, 2013). the literature on the effect of economic crisis in Finland in the 1990s on mental wellbeing reported that mental disorders were more common among the unemployed and low-income workers, self-destructive thought, financial difficulties, and deficiently social support were related with mental disorders during the crisis (Viinamäki, 2000). At the macro level, patterns of suicides, excessive alcohol consumption, domestic violence, and divorce rates support the notion of a social recession. Meanwhile, the partnership theory is less likely to dissolve in an unfavorable economic climate because during difficult times families are more likely to hold together, postponing breakups until the economy (Kneale, Marjoribanks and Sherwood, 2014). Laaksonen et al. (2009) also found a clear association between economic difficulties and common mental disorders both in Finland and Britain. Stuckler (2009) explained how economic changes have affected suicide rate from 1970 to 2007 in 26 European countries and found that every 1% increase in unemployment corresponded to .79% rise in suicides. 2.5 Recession reduce relationship quality of the low-income group. Social relationships have been found to be the strongest predictors of happiness, the study on students who reported high levels of happiness, Diener, and Seligman (2002) ound that the students with a tall level of happiness were more socialized and had more grounded social connections, compared to students with lower levels of happiness. A study moreover illustrated that individuals are most joyful when with friends. A few studies supported a relationship between happiness and friendship, closeness and social support. Some findings from other studies have also shown that social support is highly correlated with positive feelings associated with life enjoyment and can serve as a buffer for the negative consequences of stress (Dora, Gudmundsdottir, Huppert, 2015) Wage pressures can increase the risk of relationship break-down, while improvements in financial situations can decrease it (Böheim & Ermisch, 1999). Just as with relationship quality, households that fall into debt are more likely to experience relationship break-down; one study finds couples fall into the problem of debt which is unsustainable, unsecured, and the debt becomes a cause of worry among the couple sometimes lead to a relationship breakdown (Kneale & Walker, 2013). There is also evidence that at macro-level financial climate can undermine relationships. In the UK, county-level negative house price shocks have been found to be significantly associated with increases in the divorce rate, and create sustained impairment in the family stability (Rainer & Smith, 2010). However, this picture is not inevitable, and the links between financial stress, psychological states, and quality relations, are seemed to be veritable changes in familys even society. The couple relationship may be deteriorated relocating to the new house or difficulties to pay house bills the relation likely to become depressed. the previous study pointed out that, during economic pressure, emotional distress is likely to found among the spouse, for some degree distress is associated with insignificant support from the parent. Because the literature shows that those who supported by their relatives during this time are happier and have a strong relationship than those who their parents felt to support (Simons, 1993). Thus, decent quality relationships can help to safeguard the relation against adversities associated with recession. Those who already in bad situation likely to be excessively affected by economic stress, Lack of buffering effect make it essay for recession to damage the couple relationship especially those who in weak relation, couple negative interaction, are likely to reinforce effect of recession and make more decent between couple (Kneale, Marjoribanks and Sherwood, 2014) 2:6 Background on Economic Recession in South Sudan.Advanced Sudan started with Anglo-Egyptian Condominium (1898-1955). Amid this time, Britain and Egypt were colonizing Sudan, with partitioned administrative arrangements for the north and South. Sudan got it independent at the end of 1955 and starting of 1956, shockingly, enter to the long gracious wars right away after the declaration of the independence for long periods since unresolved issue between South and North, which ended 2005, by marking of the Comprehensive Peace Agreement (CPA). The allowed partial-autonomy to South Sudan region represented by new Interim Structure. Under the terms of the CPA. On 9 January 2011, South Sudanese voted in a referendum provided by the peace agreement and chosen to separation over unity from the north by more than 98 percent of the votes (UNDP, 2019). Despite gaining independence, the nation remains delicate and characterized by all levels of destitution and prohibition, limited access to essential services, largely rural, widely depopulated. About 83 percent of people stays in country areas. Poverty is endemic with at smallest 80 percent of the population characterized as Low income and living on an identical of less than US$1 per day. More than one-third of the populace lacks access to food (CNN, 217).However, South Sudan holds potential natural resources including oil, gold, silver, iron ore and copper, and many more The nation has sufficient fertile lands that can suit for cultivating cassava, groundnuts, sweet potato, sorghum, sesame, maize, rice, finger millet, cowpea, and beans. At the same time, the economy is dominated by the oil division. Outside the oil sector, employment is currently concentrated in low efficiency, unpaid agriculture and pastoralist work. As much as 85 percent of the working populace is locked in in non-wage work, mainly in subsistence agribusiness and animals raising almost 78 percent of the working populace (UNDP, 2019). The agriculture segment is generally rain-fed and outstandingly vulnerable to climate alter patterns. South Sudan experiences both wide localized dry spells and surges. There are no virtual businesses and practically all intermediate and consumer products are imported. The only modern industrial sector is the oil industry, in which foreign investors, particularly Chinese, Indians, and Malaysians dominate (UNDP, 2017). On 15 December 2013, a power struggle within the (SPLM) the ruling party, led to conflicts and reached to part of oil production areas, cut almost help of production, affect the economy the GDP declined to -46.1(NBS. 2017). This event followed by a substantial decline in oil prices in the world market in 2014, significantly reduced government revenues and foreign exchange income (Budget, 2016/2016). This crisis deepens the effects on country GDP, Gross National Income per person has fallen by an estimated 70 percent, this forces the government to run down its foreign reserves, then borrowed from both domestic and international, furthermore, government decided to float the exchange rate led to jumping in the inflation rate, however, government and borrowing from Central Bank has deteriorated National currency, which keeps inflation to continued increasing led to devastated the lives of thousands of South Sudanese. After civil war started the country economy has continued to deteriorate annually on the downside, the Countrys GDP frequently falling, Inflation continued to increase at sequential rate. The South Sudanese Pound continually hitting new lower against international currencies (NBS, 2016). There are related factors contributed to the present economic recession in South Sudan, including oil shutdown due to a dispute over transit fee in 2012, followed by civil war 2013 and decline in oil prices in the international market, in addition to poor economic policies which resulted in insignificant in the hard currency turn into inflation. Decline in growth rate accelerates and exacerbates situations of low income and increases the poverty rate among South Sudanese specifically in Juba. The town is experiencing rise in statistics of families living under the poverty level (CMC Report, 2015). The dispute over oil fees transfer with the Government of Sudan where by government of South Sudan decided to short down the oil production was the first shock of the country economy, the GDP fall to -46.1. not less than eight months, the government resumed oil production but later irrupted by a war in December 2013, which lead to a reduction in quantity produced, followed by fall in oil prices which force the government to borrowed from the Bank of South Sudan, caused rapid inflation and exchange rate depreciation. The economy suffered severe shocks and performed poorly over 2015-16. The ongoing fall in oil prices resulted in a large decline in South Sudans Gross National Income (GNI). This was in addition to a significant fall in oil production over the year caused by maturing oil wells and damage during the civil war. The fall in both oil production and oil price reduced government revenues, and combined with Government borrowing from the Bank of South Sudan, caused rapid inflation and exchange rate depreciation. The Ministry of Finance and Planning estimates that South Sudans GNI per capita in US dollars has fallen by around 70% since independence (Ministry of Finance, 2016)The reduction in oil production and the decline in oil prices has resulted in less revenue for the government and less inflow of dollars to the Bank of South Sudan. Domestic demand for foreign currency, mainly to finance imports and meet external financial commitments (e.g. servicing foreign loans and transfers to Sudan), has outstripped supply. The macro-fiscal implications have been twofold: a widening fiscal deficit, and a large depreciation in the black market exchange rate (South Sudan Budget, 2013/2014). Unlike during the 2012 oil shutdown, reserves have been depleted, and sufficient new external loans have not been forthcoming. There has been little room for reducing overall spending as the military conflict that followed from the December 2013 crisis has made it necessary to increase allocations to the security sector. The government has financed the deficit through its overdraft with the Bank of South Sudan. As a result, the supply of SSP as measured by the monetary base has increased, fuels inflation. However, despite the depreciating exchange rate and increasing domestic money supply, inflation has remained relatively low until recently 2016. The economy remains deeply depressed, as low private domestic demand makes it difficult for suppliers of goods and services to fully pass on the increase import prices to domestic prices. This situation is reflected in the money supply, as the increase in the overall amount of base money has not to lead to a significant increase in the amount of SSP in circulation (Minister of Finance Speech, 2016). In other words, as the Government pays its suppliers, this money is being saved in the form of deposits, which is less liquid than currency in circulation, rather than being spent on consumption or investment, the annual inflation reached 38 percent in May and is expected to increase further in the months ahead as the large fiscal deficit will exert further pressures on the black market exchange rate and import prices (NBS, 2017). The below graph show rising of food cost in juba from 2013 to 2018. The Inflation increased to 102 percent during 2016 and 2017 as show by the graph, the beef price increases in 2016- 2017 from 170 SSP to 430 SSP , again price increased in 2017-2018 from 430SSP to 1300 SSP, whereas vegetable oil has increased moreover from 150 to 240 SSP. Sugar also its price has increase over the five years without decreasing, aa in above graph the prices was relatively around 5-10 SSP in before economic recession, although it remain relatively low in 2014,but started increases in 2015-2016, then score highest rate in 2018 from 50 SSP to 230 SSP. This galloping inflation leads to wages loss purchasing power and continues to put many low income in both urban and country areas of Juba in a stressful situation since they are unable to bear even the minimum food basket (Pape & Dihel 2017).All these factors had deteriorated living standard and well-being of the low income earners in South Sudan. Ameresekere & Henderson. (2016) says that mental sickness often attracts in post-conflict and low and middle-income societies but the two are inseparably connected. Mental illness adds substantially to financial recession in South Sudan.Neuropsychiatric conditions, such as stress, depression and substance abuse, account for 9.8% of add up to illness in low and middle income group. Whereas probably significantly underestimated, more than 800,000 people every year committed suicide with the majority (86%) coming from low and middle-income group. Mental wellbeing is especially vital for South Sudan as the larger part of the population has been exposed to high rates of violence, economic hardship, and financial threat. Mental wellbeing information in South Sudan are constrained. One post-study from Juba twon found that 36% of the sampled population (n=1,242) met criteria for posttraumatic stress, disorder (PTSD) and 50% for depression. Another study, conducted all over South Sudan, found the prevalence of PTSD was 48% among South Sudanese. These studies demonstrate a high prevalence of mental ailment in South Sudan as well as the potential for an increase in psychiatric illness as more situation getting worse.According to the 2015 world suicide rae report on suicide, South Sudan ranks at position 13 out of 172 nations, and fourth highest in Africa, after Mozambique, Tanzania and Burundi. It was closely followed by Uganda. Around 10 out of 100,000 individuals in South Sudan ended their life since economic recession begun, on an estimated population of 10 million, it means Although the reasons for people to take their own life are complex, the economic aspects still has highest percent, financial hardship show up with 49% people, whereas financial threat with 24%, however, loss of beloved one because of war account 11% while 22% attributed to the use of alcohol. (Berg 2015)1,000 South Sudanese commit suicide each year in this current recession.2:7 Conclusion: I would like to conclude by saying most of the literature seemed to agree that the economic recession leads to a decrease in subjective wellbeing. Past literature demonstrates that wage is related to happiness and unemployment with unhappiness. The relationship between increased income and happiness is well documented while the impact of decreased income has been less explored (Gudmundsdottir, 2013). I believe income tends to decline during recession due to inflation whilst basic needs related expenses tend to rise which stretch consumer budgets led to negative effect on the well-being of low-income earners, The constraints of a xed income in private and public sector challenge individual ability of low income to cope with sudden changes in economic wellbeing and these challenges can have an adverse impact upon the quality of life and well-being of many low-income people within the society I argue that government and local NGOs shall have direct and collective responsibilities towards this group during a recession by encouraging the group to be productive through skills acquisition, agriculture incentivization and encourage investors in the area to invest in the agriculture sector. Studies suggest that household and pensioners face difficulties in their choices to maintain the minimum of their happiness during recession, but low income seemed to be worried even about their daily meals and sometime between to support their beloved one or to keep the amount of money that they have for survival, which affects quality relationships between families and friends. The low-income group tends to devote a greater share for food. Second, various approaches have been used to ascertain the matter of the effect of the recession on the low-income household as in literary studies. However, qualitative approaches are more popular among theories of happiness. This study will combine both qualitative