when we started out, my wife got $25/week grocery money, and it took every penny of that to keep us fed. She got old and depressed very fast. Day after day, a little older, a little sadder. then I got a raise Now it was $35/week, and she became the happiest woman you would ever want to meet. The change was quite remarkable. She still spent $25 on groceries, but she had $10 to blow on whatever she wanted. Then I started making a lot more money, and she never got any happier. As a matter of fact, oh well, we're not married anymore.
Maybe it has to do with your expectations for your surroundings or yourself. If someone told me $65K was all I would ever be able to make, I am sure I could be happy on that. I would have to live differently than I do now, but don't think it would be such a difficult adjustment. I could drink Budweiser and go to the Olive Garden and the movies and live in a bungalow or small condo. I like those things. Maybe not as well as French Bordeaux and the opera, but that's ok. However, if I made $65K and I knew that it was only my own lack of skill, talent, ambition, or education that stood between me and an income well above that, I would never be satisfied with the $65K. I expect a lot of myself, therefore I "deliver" a lot for myself. I notice that other people are often very content with less. Sometimes they do not believe that more is achievable for them, and sometimes they do not think that more will add anything to their lives. If you have not tasted the finer things in life then I suppose you do not miss them. That is fine for them; I do not look down on it. But it's not my preference.
I think it really depends on the person and their situation. Someone who has expensive hobbies, such as driving sports cars and art collecting, would probably be happier with more money than $75K. Someone else who just likes reading books or playing board games would be fine with $75K.
Most of these comments are combining the two different parts of Kahneman's theory. Kahneman divided 'happiness' into an experience part and a 'story that we tell ourselves'. To achieve happiness on the experience side, $75k could buy a basic existence outside of a few large cities. However, happiness for most people has to do with the context and story that we tell ourselves and on which our self-esteem is based. You could give everyone $75k and meet the experience need; but you would not touch the 'story need' at all. The story will always company to others; wish for more; strive for recognition; etc. etc. Statist would have you believe that social problems could award everyone $75k a year and our problems would be solved. You want to improve both the experience and story and make the majority happy? Increase the number of jobs - put people back to work --- cut taxes and needless regulation. Good luck,
Mainly Jewish immigrants to Britain used to arrive in the squalid, overcrowded East End of London from Europe. Many were skilled and went on to make money. As their wealth increased they bought better properties in Golders Green/Hamppstead etc. The really rich like the Rothschilds bought huge properties with high walls and big gates outside London , in the countryside. Were they happier ? Probably not. lonelier - I expect so.
yes, when I got divorced, I met a very liberal girlfriend. She was the first person I ever met who challenged my idea, that a good economy was the solution to all problems. That, as you say, simply giving someone 75k/year meant nothing. In her mind, people weren't happy unless they were growing their own food, not buying from corporations, sharing with their neighbors, active in local politics, etc. so I had a wife that was not happy no matter how much I made and a girlfriend that was not happy no matter how much I made me? I've always been happy as long as I'm not cold or hungry (and there were some days as long as it's not TOO cold or I'm not TOO hungry.)
Finally I read the article I was referring to. It is a pretty solid article! As I am not an American could you give me rough estimates that 50k, 60k and 75k respective pre-tax household income translates to how much in average household taxed income, respectively?
Happiness is a state of mind plus the basics. Some enjoy the chase ( man's hunting instinct ) others ( mostly women ) enjoy spending it.
That's right. Happiness is subjective. Your brain releases dopamine to reward you for an accomplishment, and each person has a unique perspective on what constitutes an accomplishment. The brain provides the carrot on a stick, and attaining the carrot is what gives meaning to a person's life. Without dopamine, we would have no motivation to do anything.