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Can Money Buy Happiness or Not?
Wharton study shows link between wealth, well-being
Business Times 26 May 08
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Researchers at the
While this may seem logical to some, the research flew in the face of a longstanding theory that happiness of a country's population does not rise with income, after certain basic needs are met.
This theory, dubbed the Easterlin Paradox, was developed in 1974 by Richard Easterlin, an economist currently on the faculty at the
Mr Easterlin's research had drawn on surveys notably from
Wharton economists Betsey Stevenson and Justin Wolfers contend in the new research that better data over the past three decades and a closer analysis suggests that the Easterlin Paradox is flawed.
They found that the wealthiest countries in terms of gross domestic product (GDP) per capita rank near the top of surveys on happiness, with the poorest at the bottom. More significantly, within each country, higher incomes translated to higher ratings of life satisfaction, they found.
'There appears to be a very strong relationship between subjective well-being and income, which holds for both rich and poor countries, falsifying earlier claims of a satiation point at which higher GDP is not associated with greater well-being,' they say in a paper to be published by the Brookings Institution.
'The Easterlin Paradox says that what I care about is my relative ranking in society,' Ms Stevenson told AFP. 'It says economic development doesn't matter at all - that the
The results have important implications for public policy. Ms Stevenson and Mr Wolfers noted that economic growth might not be considered an important policy goal if it does little to raise well-being.
The Wharton researchers said that multi-nation surveys such as the Gallup World Poll and the Pew Global Attitudes Survey reveal 'quite powerful effects of income on happiness'. 'There is no evidence of a satiation point,' Mr Wolfers told AFP. 'Even as rich counties get richer, they appear to get happier.' The researchers said that they were not seeking to make any political point or support an ideology.
Although backers of the Easterlin theory said that it argues against unbridled pro-growth capitalism, Ms Stevenson said that the new research could also be used to promote more distribution of wealth.
'A 10 per cent increase in income for a poor person will give you the same gain (in happiness) as a 10 per cent gain for a rich person but it would cost a lot less,' she said.
Accordingly, she said that redistributing income from the rich to the poor could increase a country's overall happiness quotient.
Mr Easterlin, meanwhile, stands by his research, updated several times since the 1970s.
In a 2004 paper, he said that surveys continue to support his thesis.
'Contrary to what economic theory assumes, more money does not make people happier,' he wrote.
'Most people could increase their happiness by devoting less time to making money, and more to non-pecuniary goals such as family life and health,' Mr Easterlin said.
'It's necessary to separate shorter term fluctuations in which GDP and happiness are positively related from the long-term association between growth and happiness,' he said in comments e-mailed to AFP.
'The conclusions of (the Wharton) paper appear to be based on the short-term association and do not contradict the findings regarding the longer term.' The new research, meanwhile, has set off a fierce debate among scholars. -- AFP

I WAS sitting alone in my school canteen one afternoon when a girl came up to me and asked if I had time to spare. Yes, it was yet another get-to-know-God session.
I'm sorry if this sounds impolite, but I've had enough of such encounters in school and other public places.
I find the increasingly noticeable trend by Singaporeans to proselytise in public worrying.
It is not uncommon when one is sitting alone outside Starbucks, or on a bench in school, to find oneself being approached by some stranger who starts introducing his or her concept of religion.
It may be acceptable to spread one's religion by setting up a booth at
Proselytizing in school is too much. I am well aware that these people mean well, and feel intensely about their beliefs and that good things are meant to be shared. I feel the same way about my religion too but I do not do what they do because it is not the right way to share my beliefs.
Such get-to-know-God sessions are undemocratic because they indirectly convey the message that a person feels his religion is superior to the beliefs of others, and that others should therefore switch.
It is also intrusive especially if courtesy requires one to listen when one wishes to turn away. I am glad that my friends, who are of a different religion, do not try to convert me.
Religious freedom does include the right not to be annoyed by someone who over-enthusiastically tries to promote his or her beliefs.
Tolerance and acceptance have their limits.
I believe that the only way for a person to win respect for himself and his beliefs is for that person to be a good person first.
He should embody the values which his beliefs teach him, and prove the strength of love through actions, not sermons.
Show me that your beliefs make you a better person, and that your religion makes you care for the world; that is all you need to do.
After encountering one too many sessions in public, I think that there perhaps should be a law to ban such religious touting.
Wee Feng Yi (Ms)

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