In view of the prevailing debates on the upcoming U.S. Presidential Election, I thought this question would be of interest.
Roughly, Democrat would say the former, and Republican the later.
Big data from around the world however point to a single, clear answer. And that is certain [government] interventions in the market can improve human happiness.
Out of the three most important factors for happiness – social support, income security and health – the latter two can be most directly influenced by governmental policy.
I suppose that absolute free market would be too risky/ chaotic for human taste. Just look at the past financial crises from market failures around the world as case in point.
What is your thought? Is there another answer?