Don’t Restrictions on Freedom Affect the Quality of Life?

It is hard to believe that the Commission on the Measurement of Economic Performance and Social Progress would consider that freedom and personal responsibility have little relevance to the quality of life, but I haven’t been able to find any discussion of freedom or personal responsibility in their recently published report. The Commission, whose members include Amartya Sen and Joseph Stiglitz along with a list of other prominent academics, was established by the President of France, Nicolas Sarkozy.

The Commission’s report seems to have plenty to say about the limitations of GDP, and various issues concerning measurement of quality of life and sustainability, but the closest it comes to recognition that freedom might have some relevance to the quality of life seems to be in a sentence discussing freedom to exercise political voice. While it is good for people to be permitted to complain about restrictions on their liberty, it seems to me might be better if they had less restrictions on liberty to complain about. The authors give the impression that they consider that only the latter two words in the call for “liberty, egality and fraternity” are relevant to the measurement of social progress.

I would have been pleasantly surprised if the Commission’s report had endorsed the theme running through this blog that human flourishing must be a self-directed activity and that liberty is necessary for self-direction. (Some posts discussing these concepts are here, here and here.)

However that would have been too much to hope for. Although the relevance of rights is widely recognized in discussions about political institutions, the importance of the right to self-direction is often overlooked when it comes to discussions of the merits and demerits of alternative policies. Rights are routinely overridden when democratically elected governments consider that more important matters are at stake such as “social justice” or even the well-being of the people whose rights are infringed.

I had hoped, nevertheless, that the report would give some recognition to research findings that people value freedom. For example, it could have mentioned John Helliwell’s finding that people tend to have higher life satisfaction in countries in which a high proportion of the population are satisfied with their freedom to choose what to do with their lives (see NBER Working Paper 14720). The Gallup World Poll shows that satisfaction with freedom in France (82%) is somewhat higher than the U.K., but lower than in the U.S. (88%), Australia (91%) and Denmark (96%).

The fact that the vast majority of people in democracies tend to be satisfied with their freedom is related to economic freedom and civil liberties (as shown here). In addition, people would not be expected to feel that their freedom is being unduly restricted unless they are not permitted to do things that they actually want to do. But their sense of personal competence and self-respect must be weakened when responsibility for important aspects of their lives – such as family health care, education and saving for retirement – are taken out of their hands by paternalistic governments.

There is some survey information available to compare the extent that people in different countries feel that they have personal responsibility for what happens in their lives. Data from the World Values Survey shows that French people tend to feel that they have less control over their lives than people in the U.K., U.S. or Australia. The French also scored lower than people in the U.K, U.S. and Australia on the Gallup World Poll question asking whether respondents were proud of something they did yesterday. The Commission seems to overlook such matters.

I am sympathetic to the Commission’s view that more research should be done to assess the links between various dimensions of the quality of life. It is disappointing, however, that the Commission does not recognize freedom as an important dimension of the quality of life.

To what extent are perceptions of freedom based on objective factors?

The Gallup World Poll has asked people in a large number of countries: “Are you satisfied or dissatisfied with your freedom to choose what you do with your life?” Recent research has shown that, even after controlling for other relevant variables, people tend to be more satisfied with their lives in countries in which a relatively high proportion of the population are satisfied with their freedom to choose. (See: John Helliwell, Christopher Barrington-Leigh, Anthony Harris and Haifang Huang, ‘International Evidence on the Social Context of Well-being’, Working paper 14720, NBER, 2009.)

This is hardly surprising. People who feel relatively satisfied with their lives could generally be expected to be satisfied with their freedom to choose what they do with their lives. Do the results have more profound implications? Is the proportion of people who are satisfied with their lives related to economic freedom (encompassing personal choice, voluntary exchange, freedom to enter and compete in markets and protection of persons and their property from aggression by others) and civil liberties? Alternatively, is satisfaction with freedom an emotional state that is unrelated to objective circumstances?

The Figure below has been obtained by matching the Gallup data on satisfaction with freedom with the Fraser Institute’s data on economic freedom and Freedom House’s data on civil liberties for 121 countries, and then ranking countries according to the percentage of people who are satisfied with their freedom to choose what to do with their lives. The results suggest that economic freedom and civil liberties tend to be substantially greater in countries where people are more satisfied with their freedom to choose.


Regression analysis suggests that economic freedom and civil liberties have a positive influence on the degree of satisfaction with freedom in different countries but only explain a modest proportion of the variation in this variable. In some countries (including China) the degree of satisfaction with freedom is much higher than predicted and in some countries (including Hungary) it is much lower than predicted.

In order to test whether there is a link between satisfaction with freedom and emotional states, another data set has been constructed which incorporates data on inner freedom (percentages who feel they have a great deal of choice and control over their lives) from the World Values Survey. Unfortunately the inner freedom data was collected for a smaller number of countries, so the matched data set only covers 70 countries. (Another problem with the inner freedom data is that it does not match very well in terms of the time at which it was collected. It was collected around 2000, substantially earlier than the other data.)

The second Figure, including inner freedom, provides a similar picture to the first one. Countries in which relatively high proportions are satisfied with the amount of freedom in their lives tend to have relatively high proportions who feel a great deal of inner freedom.

Inclusion of the additional variable in the regression analysis results in a substantial increase in the proportion of variation in the degree of satisfaction with freedom explained by the model, but reduces the coefficients on the other variables. This is not surprising in view of the apparent links between economic freedom and inner freedom discussed in an earlier post.

This simple analysis does not enable me to conclude to what extent perceptions of freedom are based on objective factors. The important point that emerges is that all four varieties of freedom tend to go together.