That seems to be working as intended? The unhappiness of both "dying of exposure on the sidewalk due to untreated mental illness" and the constant gnawing fear that this is a realistic outcome due to medical bankruptcy or whatever should pull down a country's happiness index.
I've always figured that this is in fact a big reason why the Nordic countries do so well on the survey: the average is lifted not by shiny happy people holding hands, but by the strong safety net ensuring that you can't fall into a pit of despair.
You're misreading the comment. hamdingers is suggesting that the fear of "dying of exposure on the sidewalk" is inflating a country's happiness index, because people are using "dying of exposure on the sidewalk" as a realistic worst-case baseline.
No, the two people before you both understood that point, the disagreement is only on wether it is unfair that a country with a lot of people fearing dying of cold on the sidewalk is considered "less happy".
Bhutan is not ranked in the World Happiness Report, and at least one source (https://www.vox.com/policy/471950/gross-domestic-product-eco...) says that international comparative data contradicts the Bhutanese government's claim that their people are particularly happy.
Seriously, though, I think it is because it has a good natural environment and strong extended families. But that is about to change with their new planned city.
I've always figured that this is in fact a big reason why the Nordic countries do so well on the survey: the average is lifted not by shiny happy people holding hands, but by the strong safety net ensuring that you can't fall into a pit of despair.