April 20, 2009
The simplest kind of unhappiness is that caused by poverty. People living in poverty become happier if they become richer—but the effect of increased wealth cuts off at a surprisingly low figure. The British economist Richard Layard, in his stimulating book “Happiness: Lessons from a New Science,” puts that figure at fifteen thousand dollars, and leaves little doubt that being richer does not make people happier. Americans are about twice as rich as they were in the nineteen-seventies but report not being any happier; the Japanese are six times as rich as they were in 1950 and aren’t any happier, either. Looking at the data from all over the world, it is clear that, instead of getting happier as they become better off, people get stuck on a “hedonic treadmill”: their expectations rise at the same pace as their incomes, and the happiness they seek remains constantly just out of reach.
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