Money and happiness: first lesson in eudaimonology?

Abstract

The relationship between income and happiness constitutes a fundamental inquiry in eudaimonology, requiring a distinction between individual wealth, national prosperity, and the rate of economic growth. While evidence suggests that wealthier individuals within a country generally report higher levels of happiness than their poorer contemporaries, the correlation between national wealth and aggregate well-being remains less definitive. Furthermore, economic growth does not automatically translate into increased happiness, particularly when driven by forced programs that may elevate aspirations beyond achievable satisfaction levels. Happiness is modeled as a function of both absolute and relative satisfaction; consequently, if aspirations increase proportionately more than material gains—often due to a failure to account for the constancy of positional goods—subjective well-being may stagnate or decline despite rising absolute incomes. Existing survey methodologies frequently lack the precision necessary to differentiate clearly between states of happiness and unhappiness. Future research must prioritize establishing a zero-happiness baseline and utilizing the concept of finite sensibility to improve interpersonal comparability. Such rigorous, multi-dimensional studies incorporating subjective and institutional effects are essential to discriminate between the ‘hedonic treadmill’ hypothesis and theories suggesting that universal increases in consumption yield genuine improvements in human welfare. – AI-generated abstract.