Does money make people happy? Money makes you happy, but …
Wealthier people and wealthier countries are happier than poor people and developing nations. As individuals and countries get richer, they get happier.
This relationship between income and happiness is adamant.
What’s the nature of this connection? Does money make people happy?
If we say, rich people are happier than poor people it does not mean that money makes them happy. Correlation is not causation.
Wealthy countries are happier than the poor ones. Is it only money? Maybe it is the democracy, greater opportunities, the rule of law, having functioning markets, political and social institutions.
Psychologists and economists famously concluded that happiness does not really increase above incomes of $75,000 a year.
Very high incomes do not increase well-being. The increases above $75,000 are vanishingly small.
The thing that changes happiness is NOT ONLY income growth. The U.S. economy has grown a lot since the 1970s, but happiness hasn’t increased much.
For example, compulsory education up to an age older than 16 could help. Research shows that education and skills not only increase income later in life but also increase the happiness of the people.
Are you happier now that you make more money than you used to?
I think you say YES.
If you have a well-paying job, you stop looking at price tags. You never really feel stressed about money.
Economists say that money is all that matters and psychologists mean that money is completely unimportant. Where is the truth? 🙂
I hope you like this article and I would be happy if we can discuss your opinion. Feel free to write a comment below.