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In a "values survey" published in the New York Times, people all over the world were asked the question, "Taken all together, how would you say things are these days - would you say that you are very happy, pretty happy or not too happy?" Not surprisingly total happiness scores are low in many poor countries, and higher in countries with more money. However, this is true only up to a point.
After about $10,000 GNP (gross national product) per capita the score level off. In fact, with just about $11,000 GNP, Puerto Rico was found to have the happiest people in the world. The United States, with a GNP of more than $27,000 per capita, ranked substantially below Canada and most of Latin America in happiness.
Other research has been pointing out for years that happiness only increases with income up to the point where basic needs are comfortably met. Furthermore, research shows that more social interaction makes people in wealthier countries happier, while more money helps increase happiness in poor countries where social bonds are strong.
This makes sense, doesn't it? If you're poor and live with six family members in one room you have all the social interaction you need, but you could use a little money - and the privacy that money will buy. If you're rich and watching a large-screen television alone, you might benefit from having a friend or two. Common sense, perhaps, but sometime we need science to confirm these things.
By the way, you may have read on the site about some research done in just the United States. here it was found that people generally reported greater happiness up to around $40,000 or $50,000 per year of income, and then any further gains at higher incomes were minimal. News stories reported this as "Science Proves That Money Doesn't Affect Happiness," which was of course, entirely misleading. But then perhaps the reporters and news broadcasters all made more than $40,000, so they only saw the evidence that money wouldn't help them feel better. The fact that many people make less than $40,000 seems to have escaped their notice.
The truth is almost certainly a bit more complicated. First of all, it seems unlikely that money "buys" happiness. A more likely explanation is that it removes some of the stress that gets in the way of being happy. When bills are paid and there is money in the bank for unexpected expenses, it's easier to relax.
Also, the amount that may actually allow one to feel happier certainly varies according to where and how one lives. This isn't just about which country, but about which city one lives in, and perhaps even who one associates with. In other words, if you live where costs are high, it will take more to get you to that lowered-stress level.
If you associate with people who consider new cars and large televisions to be necessities - and you adopt their view - you may also benefit from the stress-relieving effect of more income, even beyond $50,000 per year. Essentially, these studies are pointing out that money helps up to the point where you feel you have a "normal" life, which is defined differently from place-to-place and culture-to-culture.
However, I think it's small part of the puzzle once we get beyond survival. There are many miserable rich and happy poor people, and vice-versa. Money can cause more unhappiness as well, for those who don't know how to handle it. But being happy or unhappy is ultimately more a result of spiritual progress. A person who understands himself and his relationship to the world is likely to be happy (which I believe is a natural state) regardless of his current financial position.
Note: This is part of the "Unusual Ways"
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