Does money buy happiness? Not! Ah, but would a little more money make us a little happier? Many of us smirk and nod. There is, we believe, some connection between fiscal fitness and feeling fantastic. Most of us would say that, yes, we would like to be rich. Three in four American collegians now consider it“very important” or“essential” that they become“very well off financially”. Money matters.
Well, are rich people happier? Researchers have found that in poor countries, being relatively well off does make for greater well-being. We need food, rest, shelter and social contact.
But a surprising fact of life is that in countries where nearly everyone can afford life’s necessities, increasing affluence matters surprisingly little. The correlation between income and happiness is“surprisingly weak” , observed University of Michigan researcher Ronald Inglehart in one 16-nation study of 170,000 people. Once comfortable, more money provides diminishing returns. The second piece of pie, or the second $100,000, never tastes as good as the first.

Even lottery winners and the Forbes’100 wealthiest Americans have expressed only slightly greater happiness than the average American. Making it big brings temporary joy. But in the long run wealth is like health: its utter absence can breed misery, but having it doesn’t guarantee happiness. Happiness seems less a matter of getting what we want than of wanting what we have.
Has our happiness floated upward with the rising economic tide? Are we happier today than in 1940, when two out of five homes lacked a shower or tub? When heat often meant feeding wood or coal into a furnace? When 35 percent of homes had no toilet?
Actually, we are not. Since 1957, the number of Americans who say they are“very happy” has declined from 35 to 32 percent. Meanwhile, the divorce rate has doubled, the teen suicide rate has nearly tripled, the violent crime rate has nearly quadrupled (even after the recent decline), and more people than ever(especially teens and young adults) are depressed.
I call this soaring wealth and shrinking spirit“the American paradox”. More than ever, we have big houses and broken homes, high incomes and low morale, secured rights and diminished civility. We excel at making a living but often fail at making a life. We celebrate our prosperity but yearn for purpose. We cherish our freedoms but long for connection. In an age of plenty, we feel spiritual hunger.