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".
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".