American scholars analyzed data from a social survey and concluded that high income can enhance "happiness," but it is not limitless.
Wealth and Poverty
Nobel Prize-winning economist Daniel Kahneman from Princeton University and his colleague Angus Deaton attempted to analyze the relationship between income and happiness, finding that Americans with an annual income of $75,000 live comfortably and happily.
They discovered that low-income individuals face many hardships; to some extent, the more income one has, the easier and happier life becomes.
The Associated Press quoted Deaton, reporting that Americans earning less than $75,000 face various challenges in life, making it difficult to be happy; as income increases, happiness tends to improve.
The two researchers published a paper in the Proceedings of the National Academy of Sciences on the 7th, stating that "more money does not necessarily buy more happiness, but low income is often associated with poor emotional states."
Joy or Sorrow
The researchers analyzed 450,000 questionnaires collected by Gallup from 2008 to 2009 regarding the happiness index of Americans, exploring how income levels affect a person's happiness and overall life satisfaction. For overall life satisfaction, respondents rated themselves on a scale from 0 to 10, with an average score of 6.76.
Regarding happiness, the questionnaire provided a series of true or false questions related to positive and negative emotions, requiring respondents to answer. The results showed that about 85% of respondents experienced various positive emotions, such as happiness and joy; 24% experienced various negative emotions, such as depression and sadness.
Threshold
The two researchers found that money is not always beneficial for happiness. Once an individual's annual income exceeds $75,000, happiness levels tend to stabilize. The effect of income growth on happiness becomes less significant.
They stated that a significant increase in income initially brings joy, but when a person faces the mundane aspects of life, that joy quickly dissipates. In other words, Americans earning $150,000 or $230,000 have a similar level of happiness to those earning $75,000.
The conclusion is: "An annual income of $75,000 is a threshold. Earning above this amount does not lead to greater happiness." The reason is that high-income individuals often work long hours, leaving little time to spend with friends or enjoy leisure, making it difficult to feel the joy that a substantial salary brings to life.
