From Dream to Disillusionment: America’s Growing Happiness Deficit

Happiness is plummeting in the United States—and it’s no accident. A look inside the data, the disillusionment, and what we can do to turn the collective frown upside down.

By Evan Buckingham

The first months of 2025 have been a rollercoaster ride for anyone following the headlines. The emotional state of the union has mirrored the chaos familiar to Minnesota sports fans during playoff season, when hope and heartbreak clash in rapid succession. This same emotional volatility is reflected in the current capital markets and consumer sentiment data: uncertainty and unease, with downstream effects that could be disastrous to the global economy and humanity’s collective mindset.

April’s release of the annual World Happiness Report delivered a blow to the United States’ narrative, revealing it fell to 23rd globally—the nation's worst showing since the report's 2012 debut. This new low is light years away from the historical perception of the U.S. as a land of endless dreams and unbridled enthusiasm, now overshadowed by rising costs, diminishing prospects, worsening health, and fraying social bonds. The results weren’t surprising, as the downward trend is not new, as it was explicitly visible throughout the pandemic. I’ll never forget the town hall when my CEO responded to employee concerns about work-life balance by telling them to be "grateful" for health insurance as it’s not a guarantee; this captured a broader failure of leadership and a lost opportunity for genuine progress, especially during a global health crisis. Meanwhile, April’s University of Michigan consumer sentiment survey neared Great Recession lows, and major U.S. airlines—aside from United’s ambiguous "dual forecast," which cited an “impossible to predict” economic climate—withdrew their 2025 projections altogether.

America’s Global Happiness Deficit

The World Happiness Report showed that for the first time, the United States fell outside the top 20 happiest nations. Scandinavian countries dominated the rankings, underscoring a crucial truth: national well-being is a policy choice.

Around the world, the high rankings of Israel (8th), Mexico (10th), and Costa Rica (6th) further complicate the logic that wealthier and/or westernized countries should be near the top of the list. Israel’s placement is particularly notable; despite the ongoing conflict with Gaza, it dropped only three spots from #5 to #8. Meanwhile, both Mexico and Costa Rica, despite ranking fourth and fifth, respectively, in murder rates per capita worldwide, still rank among the happiest countries (for comparison, the U.S. ranked #10 in murder rate). Despite facing significant challenges—including political conflict, violence, and economic strain—these nations maintain impressively high happiness scores.

This paradox could be better understood if the metric "violence per happiness unit" existed, but it highlights that the happiness equation is a result of a myriad of inputs, both of the objective and subjective varieties. To better understand why the U.S. continues to slide down unhappiness chutes rather than climb happiness ladders requires a deeper look at the underlying dynamics.

Why America Fell Behind

The economic fault lines are impossible to ignore. Rising income inequality, a shrinking middle class, stagnant wages, and a housing affordability crisis have strained the financial well-being of most Americans. Medical debt, student loans, and the reality of living paycheck to paycheck have turned financial precarity from an exception into the norm. Healthcare only compounds the problem: despite spending more per capita on healthcare than any other nation, the U.S. ranks last among high-income countries in health outcomes.

Social fragmentation has deepened the wound. Mutual trust among Americans has eroded sharply, from 45% in 1972 to just 30% by 2016, as documented by former Surgeon General Vivek Murthy in his 2023 report, "Our Epidemic of Loneliness and Isolation." Unsurprisingly, mental health challenges are accelerating too, with depression and anxiety rates hitting new highs every year. Meanwhile, loneliness affected 58% of U.S. adults in 2021, and it disproportionately affected younger generations, lower-income groups, and communities of color.

These depressing trends are not isolated—they are mutually reinforcing, creating a vicious cycle that threatens the nation’s collective well-being.

What Happier Countries Get Right

Nations like Finland and their Nordic peers prove that prosperity and social well-being are not mutually exclusive. Finland has policies that emphasize work-life balance, civic trust, and social cohesion. It offers other countries a roadmap for how deliberate, values-driven governance can lead to lasting national resilience. The consistently happy countries made a conscious choice to invest in universal healthcare, accessible housing, high-quality education, and initiatives that cultivate a sense of genuine community. The tangible result? Healthy societies, where individual well-being and collective progress are intertwined across political divides, are the happiest societies.

Happy nations deny the tired, old narrative that social safety nets stifle quality of life; the exact opposite is true. When a nation prioritizes the well-being of its people, it not only empowers individual success but also lays the groundwork for a stronger, more cohesive society that is better capable of navigating future challenges.

Where Do We Go From Here?

Lyrics in Games People Play by the Alan Parsons Project feel eerily appropriate for today’s political debates. (And for anyone keeping track of my Spotify playlist, I Wouldn’t Want to Be Like You feels like a fitting anthem to describe the current administration.) But to borrow from Eminem’s Lose Yourself, it’s time to "snap back to reality."

Leadership, both public and private, in the United States must treat healthcare reform not as a bargaining chip but as a non-negotiable necessity. Universal access to affordable mental and physical healthcare would create a rising tide, lifting millions out of insecurity and improving productivity. We must invest in affordable housing, education, and childcare to reinforce the foundational layers of Maslow’s hierarchy of needs—basic prerequisites for happiness, safety, and collective belonging.

We must also reframe our measures of success. GDP growth and corporate earnings per share cannot be the only statistics on scorecards. Former Surgeon General Murthy has argued that systemic change only works when leaders effectively communicate the stakes, engage the right stakeholders (especially those with opposing views), and provide clear action plans. Building social connection, trust, and collective health must become key national priorities, not optional luxuries for those at the country club.

Conclusion

America’s deepening happiness deficit should dominate the headlines, especially because it threatens national competitiveness. Declining birth rates, cruel immigration restrictions, and uncertainty about the long-term existence of Social Security will shrink the U.S. labor pool. Other countries have already created incentives to entice domestic talent to pack their bags. The happiness deficit is the cumulative result of decades spent prioritizing economic metrics over human well-being. The success of top-ranking nations in the World Happiness Report makes it clear that national happiness is not accidental. It is built intentionally through policy choices that prioritize people’s needs, opportunities, and connections.

Reversing the downward trajectory of happiness in the United States will not be easy or quick. It demands systemic reforms and leaders willing to prioritize long-term societal health over short-term political and financial wins. American society needs a renewed commitment to the proposition that a prosperous nation should also be a happy one.

Perhaps we should take comfort in recent research on swearing. Studies indicate that screaming a few well-chosen profanities into the void isn't so bad for us after all. Shout some expletives when you are unhappy and demand that our society invest in our future well-being.

Evan Buckingham brings a wealth of experience—from serving in the Peace Corps in El Salvador to finance roles in Puerto Rico and Boston, as well as leadership positions in multinational corporations—that enables him to navigate and contribute thoughtfully across a broad range of topics. Whether dissecting societal trends, analyzing economic challenges, or exploring cultural narratives, his global perspective and versatile expertise lend depth and clarity to each subject. A lifelong learner, Evan first connected with Jeremi during a certificate class he taught at the University of Texas at Austin.