Study: Money Can Buy Happiness

Gee…really? From the NCPA:

For the past few decades, research has shown that after a person’s basic needs are met, higher income is not associated with a higher state of subjective wellbeing. However, a new study has found contrasting results. In fact, the data show that the relationship between wellbeing and income rises linearly as income rises, says Betsey Stevenson and Justin Wolfers of the Brooking Institution.

  • Richard Easterlin claimed in 1974 that increasing average income did not raise average wellbeing.
  • The claim, known as the Easterlin Paradox, was supported in the years following by an array of studies supporting the claim.
  • Recent studies have pointed to a robust positive relationship between wellbeing and income across countries and over time.

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