How government spending affects our mental health

Scientific litsketch on boosting mental health

Research shows that how our government collects and spends taxes has a significant influence on our happiness (Oishi et al., 2012). A survey study from 132 countries shows that people who live in countries that have more progressive taxation that collect a higher tax rate from the rich than the poor feel more happy. Also, people who live in countries that have high government spending as a percentage of their GDP feel less happy.

In other words, when governments redistribute wealth but spend less, their citizens feel more happy on average.

Oishi, Shigehiro, Ulrich Schimmack, and Ed Diener. "Progressive taxation and the subjective well-being of nations." Psychological science 23, no. 1 (2012): 86-92.