Social Norms and Institutions
already have. This is an old conjecture (which used to be
called the declining marginal utility of income). But well-
being science has shown it to be true.^29 The best relation-
ship between life- satisfaction (0– 10) and income is of the
form: Life- satisfaction = α Log Income. This means that
an extra dollar is x times more valuable (in terms of life-
satisfaction) for a poorer person than for a rich person who
is x times richer. Thus for a given average income, a more
equal society should on average be happier.
But there could also be other reasons why this should
be the case. For equality directly influences the quality of
interpersonal relations in a society. Wilkinson and Pickett
have shown that more equal societies tend to have more
trust, better health, and so on— at all levels of society.^30 This
implies some kind of atmospheric effect.
But empirical work on the effects of inequality on life-
satisfaction has yielded very mixed results. Many studies
have failed to find any effect.^31 The most positive results are
in an interesting time- series study using both the US Gen-
eral Social Survey and Eurobarometer.^32
The conclusion should probably be this: an ethos of mu-
tual respect and care is crucial for a happy society. Such an
ethos will be highly correlated with trust, low corruption,
good social support, effective government— and greater
equality of income. The priority is therefore to improve the
whole ethos of a society and not simply to equalize income.
Religion
This brings us to the issue of religion, which can play at least
three major roles: to instill values, to offer comfort, and to