According to "Balancing Liberty and the Pursuit of Well-Being", who was the first to urge politicians to design policies that would maximize people's happiness?

Jeremy Bentham.

Explanation:

Jeremy Bentham was an English philosopher and political radical. He is primarily known today for his moral philosophy, especially his principle of utilitarianism, which evaluates actions based upon their consequences ... Happiness, according to Bentham, is thus a matter of experiencing pleasure and lack of pain.