Happiness, for an investment banker, might be a big bonus – or, at least, a bigger bonus than the next guy's. For those who do not receive bonuses however, pointy heads at the London School of Economics last week debated whether the state makes people happy.

In the blue corner was Dr Raj Persaud, the media psychiatrist. In the red corner was the LSE's economics professor, Lord Layard, who argued that governments can make people happier by tackling problems such as mental ill-health, unemployment and low incomes. He even suggested teaching schoolchildren that helping others makes you happy.