Economist Mike Walden: Does Money Buy Happiness?

I think psychologists would say most people want to be happy.  But obviously there are many elements to making anyone happy.  Does money appear to be one of them?

  1. research suggests that, yes, on average more money makes people happier
  2. makes sense – money represents access to resources, so the more money you            have, the more resources you can have for yourself or others
  3. but there are many caveats to this relationship
  4. first, money is not the only thing that makes people happy, and may not even          be the most important
  5. second – increases in money for a poorer person seems to increase their                happiness more than the same increase in money for a richer person
  6. third, often don’t see general increase in happiness over time if average                 income in a country increases – makes sense, happiness is relative; also,                 the income increases may not occur for everyone
  7. so, maybe the takeaway here is that money isn’t everything, but it helps