Sources for data are the world bank and the world happiness report 2017 according to the numbers, the relationship between money and happiness is strong early on for countries then later, when material elements of maslow’s hierarchy are met, the relationship gets harder to predict. Sure, i would be equally leery about a claim that there was a relationship between having less and being happier but it does make you wonder but it does make you wonder i’m not foolish enough to believe that money plays no role in happiness. Another recent article by elizabeth w dunn, lara b aknin, and michael i norton, published in 2008 in science, concluded that money can buy happiness, so long as the money is spent on someone else they described three studies.
In one sense, people already know that their happiness is related to their income, but the details of how exactly that relationship works are important income is often used as a convenient proxy for well-being in economics, but not every dollar of income has the same end effect.
Much ink has been spilled over the relationship between money and happiness mass media has popularized the finding that there are positive but diminishing returns to income 1 in other words, increases in income cause happiness to grow only up until a certain point, the point at which basic needs are met above this point, increased income does not contribute to more happiness.
The relationship between money and happiness is relative to your state of mind (your situation) for example, 1 you have billion dollars in your bank account, but your loved one has just died, then happiness is irrelevant. Then their happiness was ascertained, those who spent the money on others were happier, and the amount of money did not matter one more finding was reported: additional participants were asked to predict what would make people happier, and they mistakenly said that the most happiness would result from spending $20 on themselves. According to the numbers, the relationship between money and happiness is strong early on for countries then later, when material elements of maslow’s hierarchy are met, the relationship gets harder to predict. A recent study suggesting that happiness levels off after a household has reached $75,000 of income raises a host of questions.
Today’s chart looks at the relationship between gdp per capita (ppp) and the self-reported levels of happiness of each country sources for data are the world bank and the world happiness report 2017.
Concluded that: money and happiness is not the way people think proportional, neither the happier the more wealthy people, the more money the less happy people the relationship between them is minimal, with scholars jargon, the relationship between them is only “slightly positive. They say money can't buy happiness of course, they're wrong a substantial body of economic research says otherwise: statistically speaking, household income is strongly related to both emotional well-being and a person's evaluation of their own quality of life.