This has been studied pretty extensively and it turns out that money definitely does buy happiness, but only to a certain point after which you get diminishing returns and eventually no increase in happiness.
It’s been awhile since I’ve looked at the literature, but if memory serves, most people max out on happiness with an upper middle-class income, so probably 3-4 hundred thousand/year for a couple in the US. After that you don’t get any increase in happiness and are actually better off giving any extra money to charities and/or sharing with friends and family.
You get to a point where basic needs and standard luxuries don’t move the needle and all the things you can’t afford are just exponentially more expensive. This phase literally never ends. There are things Jeff Bezos and Elon Musk desire that they cannot afford. But even if you are making like 200k or so, “normal” living cost quickly become trivial, and it becomes about how much you have for crazy vacations and home upgrades. But you can be perfectly happy “just” getting a high end item and not a super lux item if you are a well adjusted person
You also have to understand they grew up differently and see life differently. Not that it couldn’t happen to me, but when I say money can buy happiness I do not believe buying those luxuries is not happiness. Thats why I argue the 70k a year income is more likely than 100k, or 500k.
This has been studied pretty extensively and it turns out that money definitely does buy happiness, but only to a certain point after which you get diminishing returns and eventually no increase in happiness.
It’s been awhile since I’ve looked at the literature, but if memory serves, most people max out on happiness with an upper middle-class income, so probably 3-4 hundred thousand/year for a couple in the US. After that you don’t get any increase in happiness and are actually better off giving any extra money to charities and/or sharing with friends and family.
Looks like this one says it’s closer to 500k: https://www.cbsnews.com/news/money-happiness-study-daniel-kahneman-500000-versus-75000/
In the past, I’ve been misled by one saying 75k mentioned here.
Yeah, there was a study that found a cap at 75k, there was also another that didn’t find it afterwards: https://www.verywellmind.com/happiness-doesn-t-top-out-at-usd75-000-study-says-5097098
That’s totally believable. I don’t claim any expertise in this matter and would never claim to be anything even remotely like an economist.
Daniel Kahneman is useful to neoliberals. 75k would allow me to live very comfortably. 500k I would want for literally nothing ever again.
You get to a point where basic needs and standard luxuries don’t move the needle and all the things you can’t afford are just exponentially more expensive. This phase literally never ends. There are things Jeff Bezos and Elon Musk desire that they cannot afford. But even if you are making like 200k or so, “normal” living cost quickly become trivial, and it becomes about how much you have for crazy vacations and home upgrades. But you can be perfectly happy “just” getting a high end item and not a super lux item if you are a well adjusted person
You also have to understand they grew up differently and see life differently. Not that it couldn’t happen to me, but when I say money can buy happiness I do not believe buying those luxuries is not happiness. Thats why I argue the 70k a year income is more likely than 100k, or 500k.
Also more equal societies tend to be happier and healthier. Reducing overall wealth and income inequality is a net gain for everyone.