That's subjective happiness, aka "Taking all things together, how would you say things are these days — would you say you’re very happy, fairly happy, or not too happy these days?”
In the discussion section of the paper [0] that freakonomics post [1] is about, they talk about limitations and less straightforward interpretations of that measure and that trend. This isn't to say the guardian post is right and you're wrong, but that it isn't impossible both are correct and interesting and worthy of discussion. I don't want your post to shut down or dismiss discussion of OP.
[0] http://www.nber.org/papers/w14969
[1] http://freakonomics.com/2008/08/05/happiness-inequality-2-di...