Abstract: In the paper it is questioned whether effective state
social policy provides happiness and social progress. For this purpose
selected correlations between Human Development Index (HDI),
share of public social expenditures in GDP, the Happy Planet Index
(HPI), GDP per capita, and Government Effectiveness are examined
and the results are graphically presented. It is shown how a
government can affect well-being and happiness in different countries
of modern world. Also, it is tested the hypothesis about existence of a
certain optimum of well-being and public social expenditures, which
affect direction of social progress. It is concluded that efficient social
policy and wealth are not the only factors determining human
happiness.