Can Money Buy Happiness?

Can Money Buy Happiness? Finance & Development, March 2017, Vol. 54, No. 1

People around the world share their thoughts on what sparks this elusive feeling

Economists generally measure a country’s success in terms of its GDP. But GDP doesn’t always accurately measure well-being. And even high per capita income doesn’t necessarily guarantee a happy population, economist Richard Easterlin discovered in the 1970s.

While rich people are generally happier than poor people in a given country, Easterlin found, richer countries aren’t always happier than poorer ones. And for individuals, higher income fails to increase happiness beyond a certain level, some believe. According to Nobel laureates Angus Deaton and Daniel Kahneman, that threshold for the United States is $75,000—though in some countries this figure might be lower or higher.

So can money buy happiness? Just for fun, F&D asked a cross section of people in five countries that question and what they’d do if they suddenly got a big chunk of money.

Jaspreet SethiIndependent Financial ConsultantNew Delhi, India “Can money buy happiness? It certainly doesn’t make one sad. If it comes my way, I’ll be happy.

If I had money, I’d buy a bigger car, a bigger house, a better education for my child, and a better holiday for my family. I think the economy is much better these days. I’m investing more than my parents did right now, though they worked harder, I believe.”Pat WallRetireeLondon, United Kingdom "Money cannot buy happiness. It doesn’t solve your problems. It’s all inside you, isn’t it? I walk miles every day around London and it’s all free, and I’m really happy doing that.

If I had some extra money, I’d pay off my children’s mortgages. At my age, I don’t need anything."

Adam HassanSelf-employedAbuja, Nigeria "I think money can buy happiness, and here’s why. Money, they say, is any item that is generally accepted for payment for goods and services. That means if you have to pay school fees, you need money. If you need a home for yourself, you need money. If you want to buy yourself something to eat, you need money. So if you don’t have money to get these things, there won’t be happiness.

If I were blessed with money, I’d get myself a home, a very good car, and a wife. Right now, I have to pay double what I used to pay for goods and services. And it’s really affecting my daily life."

Jaime Ospina DoctorBogotá, Colombia"Yes, money can buy happiness. There’s a feeling in this country that if...