if you're happy and you know it...

you'll be rich! but then... will you be happy?

an interesting article on happiness and wealth landed above the fold of today's wall street journal marketplace section. it's central argument comes from psychologists seligman (of positive psychology fame) and diener. their study concludes that although a certain amount of wealth is required to attain happiness, that amount is little over the minimum wage line. at some unknown rung on the economic ladder we reach a point of diminishing returns where more money doesn't lead to a higher sense of well-being, contentment, or satisfaction.

but, you say, economists constantly argue that wealthier nations are happier nations. how can we reconcile this discrepancy? on the aggregate that's true, but as the article points out, it's only a correlation. seligman and diener rightly indicate that wealthy nations typically also have things such as liberty and rule of law. this is an interesting thread that i hope psychologists will pursue. instead of looking at wealth per se, a divisive tactic, we can all agree that institutions promoting freedom lead to a polity that's happy as clams - or, at least, has a better chance of being so lucky.

another intersting point from the article: the happier you are, the more money you'll make. perhaps i can then draw the conclusion: freedom causes happpiness, happiness causes wealth, therefore freedom causes wealth. huh.

article: Wealth and Happiness Don't Necessarily Go Hand in Hand, B1, WSJ 8-13-2004.
more on seligman and positive psychology
more on happiness vs wealth

Labels: well being