Money Does Not Bring Happiness – But Democracy Does

The more direct democracy is, the happier the people are

A scientific investigation, led by Professor Bruno S. Frey, has brought to light that direct democracy, as a form of government and society, is most suitable for humans. It produces peace, freedom and justice in a sustainable way and gives the citizens a chance for direct political involvement and influence. It has a positive effect on the state of health and is attractive for other countries. Bruno S. Frey is professor for national economy at the University of Zurich and has been investigating into relations of economy, politics and ethics for years. His studies on direct democracy make us sit up and take notice. They deserve a broad discussion.

ro. In the following article we cite important passages from Frey’s article.
“That ‘money does not bring happiness’ is partly correct, but it is altogether correct that democracy brings happiness.” For Bruno S. Frey it is a given fact that it takes a certain income to satisfy basic needs, but “while money – that is, higher income – does not make actually unhappy, it only slightly increases the subjective well-being of persons.” In fact, those who live in democratic conditions feel happier. “In particular: The better the opportunites for a direct influence on political decisions per referendum are, the more satisfied the people will be.
There are two reasons for this: First, the political conditions may be altered by the people. Particularly, governments will be requested to supply those goods and services which the people desire. Secondly, the citizens assess it highly to participate in the political process.” Frey’s statements are based on carefully performed empirical research. His scientific results confirm findings of psychology, economic and political science.
Frey and his collaborators went one step further and investigated the differences between the cantons (states) in Switzerland with respect to direct democratic participation. This also produced an interesting result. Discriminating cantons with distinctive direct democratic participation (Baselland, Glarus, Appenzell Ausserrhoden, Solothurn) and those with restricted possibilities (Geneva, Neuenburg, Ticino, Bern), he concludes: “Taking into account all other economic and socio-demographic influences, it turned out that citizens in cantons with distinctive political rights are significantly more contented.”
A prospering economy and also economic growth are important for the welfare of the population. But the economy grows more, and is more sustainable, if the citizens can participate more. This underlines again that the Swiss direct democracy has a high ethical value. We are falling in with Bruno S. Frey in advising the Swiss to be proud of their direct democracy. •

Source: unijournal 2, April 2002

Frey, Bruno S./Kirchgässner, Gebhard. Demokratische Wirtschaftspolitik. ISBN 3-8006-2737-X, new edition, 3rd quarter 2002

Especially in Switzerland there are people saying that direct democracy was an antiquated matter being inappropriate in the 21st century. We argue exactly the opposite: We find that direct democracy is not only more efficient but it also makes people happier than in other countries. And here, too, I would say again: Some other countries in our surroundings, for example Germany, could actually introduce a bit more participation via initiative and referendum.
[…] We cannot see at all that direct democracy has got a delaying effect. It is very, very often claimed that decisions are always repealed; one should, however, compare this to parlamentary democracies, in which everything is always blocked, too, though by powerful lobbies. But our country empowers the citizens via direct participation to get past powerful interest groups and I think this chance is very important.

From: Zeit-Fragen Nr 7, Feb. 11, 2008, interview with Bruno S. Frey, Swiss Radio DRS