Economic Thinkers

We Finally Know If Money Makes Us Happy

happiness and global income
Comments (1)
  1. Rick Shapiro says:

    There are two problems with these happiness studies. The first is that they don’t isolate the principal component of happiness, which is security. Chronic worry about finances not only causes unhappiness directly, but also generates physical positive (unhappiness) feedback via cortisol.
    The second problem is failure to disentangle level from rate. Assimilation of current wealth and living standard into worries about security will erode the plateau effect. In short, ever rising wealth (even very slowly rising) is often required for happiness.

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