According to the latest World Happiness Report, my country of Finland has the happiest people on Earth, a designation it has held for six consecutive years.
Since 2002, the World Happiness Report has tabulated the relative happiness of people around the globe, using statistical analysis to take into account factors such as gross domestic product per capita, social support, life expectancy, freedom to make one’s own life choices, generosity of the general population and perceptions of the level of corruption in the society.
Like other Nordic countries, Finland has well-functioning and democratic institutions that provide their citizens with extensive benefits and security. The citizens of our countries trust our institutions. Incidentally, among the other Nordic countries, Denmark was in 2nd place; Iceland was 4th; Norway was 6th.
Of course, each country has a unique history and has charted a singular path to its present level of national contentment – or lack thereof. Finland and other Nordic countries don’t have the deep class divides and economic inequality experienced by some other countries. In addition, political scientist Ronald Inglehart offered the following explanation: “our countries constitute the leading example of successful modernization, maximizing prosperity, social solidarity, and political and personal freedom.”
How does the Nordic system lead to overall national happiness? Let me use my own experience as an example.
My father was a construction worker and my mother worked in a factory. Thanks to an exemplary education system, I was able to earn a doctorate practically for free. My two daughters had access to one of the world’s finest educations – also practically free of cost.
Day care fees are subsidized for all families in Finland. Before going to school, my girls were able to attend a wonderful, highly professional public day care at an extremely reasonable cost, which allowed me, a single mom, to work. Then there is the issue of medical expenses – a huge financial hardship for many. One of my daughters has had a chronic skeletal disease since she was a young child, and medical treatment lasted more than a decade. The bulk of the expenses were taken care of by the public health system. Our taxpayer-funded universal health care is high in quality, but without piles of confusing paperwork or huge bills borne by the patient.
All this is part of our welfare state, which the Nordic countries are famous for. I realize that “welfare” is a dirty word for many in the United States and other parts of the world. But several studies confirm that a generous state welfare system has a tremendously positive impact on life satisfaction.
Some in the US have said they want less government involvement, not more, and criticize Finland’s government for having too much say about the particulars of individuals’ lives. While US companies struggle to administer health plans and find educated workers, Nordic governments provide high-quality public services for all citizens and give everyone quality education so that employers have no shortage of qualified job applicants.
Survival at the most basic, existential level is at the heart of happiness, more money doesn’t necessarily create greater happiness, and might do just the opposite. One often overlooked, but important ingredient that makes a huge difference in terms of increasing a nation’s sense of contentment, is the level of income disparity within the society. A country with relatively small income differences generally has fewer disgruntled people – perhaps it’s because there’s less of a need to try to “keep up with the Joneses.”
In a country like mine, where there are no as great extremes of wealth or poverty as in the US, the opportunity to be disenchanted with your lot in life is greatly diminished. And those unfortunate enough to fall below the poverty line in Finland know that there is a network of welfare services and public aid to help them back on their feet.
Of course, all of this social spending comes at a cost and taxes on an average worker are considerably higher than the taxes paid in the US. We have one of the world’s highest tax rates. According to data from the Organization for Economic Cooperation and Development, the average single worker in Finland faced a net average tax rate of 30.8% in 2021, compared with the OECD average of 24.6%. That’s higher than most other countries, but it’s the price that we have decided to pay as a society to have quality schools, low-cost public infrastructure, public health care and the like.
Here in the Nordic countries we have realized that the secret of happiness is found in a kind of egalitarianism and trust in our institutions. It leads to a societal cohesiveness – and happiness – that money just can’t buy.
Opinion by Marja Heinonen, 3/29/2023