Economics

Richer people are happier, but richer countries don't get happier over time

Richard Easterlin found that within any country, wealthier people report more happiness — but as whole nations get richer over decades, average happiness barely budges. His explanation: people judge their income against others', so when everyone's income rises together, relative status stays the same.

Richard Easterlin, Does Economic Growth Improve the Human Lot? Some Empirical Evidence — 1974 essay; named the Easterlin paradox

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