Money & Happiness

Here are some bits from the Jonah Lehrer's blog The Frontal Cortex that address that age-old question of whether money makes you happy:

Money is surprisingly bad at making us happy. Once we escape the trap of poverty, levels of wealth have an extremely modest impact on levels of happiness, especially in developed countries. Even worse, it appears that the richest nation in history – 21st century America – is slowly getting less pleased with life. (Or as the economists behind this recent analysis concluded: “In the United States, the [psychological] well-being of successive birth-cohorts has gradually fallen through time.”)

Needless to say, this data contradicts one of the central assumptions of modern society, which is that more money equals more pleasure. That’s why we work hard, fret about the stock market and save up for that expensive dinner/watch/phone/car/condo. We’ve been led to believe that dollars are delight in a fungible form.

But the statistical disconnect between money and happiness raises a fascinating question: Why doesn’t money make us happy?

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The Liege psychologists propose that, because money allows us to enjoy the best things in life – we can stay at expensive hotels and eat exquisite sushi and buy the nicest gadgets – we actually decrease our ability to enjoy the mundane joys of everyday life. (Their list of such pleasures includes ”sunny days, cold beers, and chocolate bars”.) And since most of our joys are mundane – we can’t sleep at the Ritz every night – our ability to splurge actually backfires. We try to treat ourselves, but we end up spoiling ourselves.

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This makes me think of the Amish. From a certain perspective, the Amish live without a lot of the stuff most of us consider essential. They don’t use cars, reject the Internet, avoid the mall, and prefer a quiet permanence to hefty bank accounts. The end result, however, is a happiness boom. When asked to rate their life satisfaction on a scale of 1 to 10, the Amish are as satisfied with their lives as members of the Forbes 400. There are, of course, many ways to explain the contentment of the Amish. (The community has strong ties, plenty of religious faith and stable families, all of which reliably correlate with high levels of well-being.) But I can’t help wonder if part of their happiness is related to experience-stretching. They don’t fret about getting the latest iPhone, or eating at the posh new restaurant, or buying the au courant handbag. The end result, perhaps, is that the Amish are better able to enjoy what really matters, which is all the stuff money can’t buy.

The above shouldn't surprise anyone. The ancient Greeks addressed the issue of happiness and came up with the idea of "moderation". The famous Epicureans were famous for equating happiness with modest pleasure and tranquility. (Funny, history distorts this philosophy into one of hedonism. Sure, it puts pleasure as the goal of life, but not the debauched pleasure-seeking that history came to assign to this philosophy.)

Simple life, simple pleasures, a circle of friends are the secrets of secure happiness. The consumption-driven society of today is diametrically opposed to these insights.