Key Finding
5. Material wealth cannot be explained only by economic factors, and happiness cannot
be explained only by subjective emotions.
For instance, a “soft issue”, such as people’s perceptions of each other’s trustworthiness, has a strong positive correlation with economic performance. High levels of trust in a society are necessary for trust-based capital markets to function. Likewise, an increased level of tolerance toward immigrants is associated with higher levels of GDP per capita. When it comes to the conditions of happiness, economic factors, such as employment status, domestic savings rates, and even internet connectivity, have a strong influence on how satisfied people are with their lives.