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Study: Money-happiness link is complex
AP on Yahoo ^ | 11/26/06 | Malcolm Ritter - ap

Posted on 11/26/2006 7:08:37 PM PST by NormsRevenge

NEW YORK - Does money buy happiness? It's sometimes said that scientists have found no relationship between money and happiness, but that's a myth, says University of Illinois psychologist Ed Diener.

The connection is complex, he says. But in fact, very rich people rate substantially higher in satisfaction with life than very poor people do, even within wealthy nations, he says.

"There is overwhelming evidence that money buys happiness," said economist Andrew Oswald of the University of Warwick in England. The main debate, he said, is how strong the effect is.

Oswald recently reported a study of Britons who won between $2,000 and $250,000 in a lottery. As a group, they showed a boost in happiness averaging a bit more than 1 point on a 36-point scale when surveyed two years after their win, compared to their levels two years before they won.

Daniel Kahneman, a Nobel-Prize winner and Princeton economist, and colleagues recently declared that the notion that making a lot of money will produce good overall mood is "mostly illusory."

They noted that in one study, people with household incomes of $90,000 or more were only slightly more likely to call themselves "very happy" overall than were people from households making $50,000 to $89,999. The rates were 43 percent versus 42 percent, respectively. (Members of the high-income group were almost twice as likely to call themselves "very happy" as people from households with incomes below $20,000.)

But other studies, rather than asking for a summary estimate of happiness, follow people through the day and repeatedly record their feelings. These studies show less effect of income on happiness, Kahneman and colleagues said.

There is still another twist to the money-happiness story. Even though people who make $150,000 are considerably happier than those who make $40,000, it's not clear why, says psychologist Richard E. Lucas of Michigan State University.

Does money make you happier? Or does being happier in the first place allow you to earn more money later, maybe by way of greater creativity or energy? Or does some other factor produce both money and happiness? There's evidence for all three interpretations, Lucas says.

In any case, researchers say any effect of money on happiness is smaller than most daydreamers assume.

"People exaggerate how much happiness is bought by an extra few thousand," Oswald said. "The quality of relationships has a far bigger effect than quite large rises in salary.... It's much better advice, if you're looking for happiness in life, to try to find the right husband or wife rather than trying to double your salary."


TOPICS: Business/Economy; Culture/Society; Miscellaneous; Your Opinion/Questions
KEYWORDS: complex; happiness; money; study
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To: NormsRevenge

Seems like splitting hairs to me. Being rich is better than being poor, in general, but there's more to it than that.


41 posted on 11/26/2006 8:21:51 PM PST by ozzymandus
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To: winner3000

That's called "screw you" money. It's a good thing to have.


42 posted on 11/26/2006 8:22:45 PM PST by ozzymandus
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To: devolve

He ain`t going to have any money after her. I heard he is freggin` drinking his arse off now, hitting bars like they are going out of style. I would too with that hellion on one leg taking me up the river. What an ass not getting her to sign a pre-nup. She`s going to take half his loot and the lawyers are going to take the rest.


43 posted on 11/26/2006 8:24:16 PM PST by Screamname (Tagline: (optional, printed after your name on post):)
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To: NormsRevenge

If my student loan disappeared I'd be pretty darn happy.


44 posted on 11/26/2006 8:25:14 PM PST by A_perfect_lady
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To: potlatch


45 posted on 11/26/2006 8:26:49 PM PST by devolve ( .................always shop, invest, & hire wisely)
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To: digger48
Find the right wife to be a Poodleboy to......


46 posted on 11/26/2006 8:28:15 PM PST by Screamname (Tagline: (optional, printed after your name on post):)
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To: devolve

That is really beautiful devolve! My speakers are booming!!


47 posted on 11/26/2006 8:33:39 PM PST by potlatch (Does a clean house indicate that there is a broken computer in it?)
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To: A_perfect_lady

I`m not sure but I think you can rid yourself of a student loan by claiming bankruptcy if you are poor enough, or can prove undue hardship such as unemployment, or eviction ect ect. I freggin` hate hearing about people stuck with these enormous debts from going to school because these schools absolutely rip off the students, and you get these absolute liberal a-hole Professors as teachers, it`s a freggin` joke today. What is it now, $60 grand a semester? $1000 a credit? These schools are a complete racket.


48 posted on 11/26/2006 8:36:40 PM PST by Screamname (Tagline: (optional, printed after your name on post):)
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To: NormsRevenge
I've been rich and I've been poor. Believe me, rich is better. -- Mae West
49 posted on 11/26/2006 8:42:02 PM PST by martin_fierro (< |:)~)
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To: potlatch


50 posted on 11/26/2006 8:48:11 PM PST by devolve ( .................always shop, invest, & hire wisely)
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To: devolve

Wow, quick change artist!! Very pretty - again.


51 posted on 11/26/2006 8:52:36 PM PST by potlatch (Does a clean house indicate that there is a broken computer in it?)
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To: NormsRevenge

It's similar to Maslow's Hierarchy of needs....You need enough money for the basics.....shelter, food, health.....everything else is pretty much under your control after that.


52 posted on 11/26/2006 8:53:41 PM PST by goodnesswins (I think the real problem is islamo-bombia! (Rummyfan))
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To: potlatch




53 posted on 11/26/2006 9:03:10 PM PST by devolve ( .................always shop, invest, & hire wisely)
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To: devolve

Very cute, haven't seen Schroeder in sometime. The song Piano Man tells a whole story, doesn't it?


54 posted on 11/26/2006 9:07:56 PM PST by potlatch (Does a clean house indicate that there is a broken computer in it?)
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To: potlatch


Thanks potlatch -

Yes -

He's baaaaaaaaaack!

Gone tune - long player - interesting lyrics


55 posted on 11/26/2006 9:12:24 PM PST by devolve ( .................always shop, invest, & hire wisely)
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To: Screamname

Actually, a student loan is one debt you cannot write off in bankruptcy.


56 posted on 11/26/2006 9:13:41 PM PST by Auntie Mame (Fear not tomorrow. God is already there.)
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To: devolve

Your posts are fantastic tonight. The disco floor looks great, the girls, the musical notes. Very nice.


57 posted on 11/26/2006 9:15:12 PM PST by potlatch (Does a clean house indicate that there is a broken computer in it?)
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To: potlatch


Thanks

A little zipperoo on the thread


58 posted on 11/26/2006 9:21:09 PM PST by devolve ( .................always shop, invest, & hire wisely)
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To: devolve

59 posted on 11/26/2006 9:24:31 PM PST by potlatch (Does a clean house indicate that there is a broken computer in it?)
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To: potlatch


heh

No comment!



60 posted on 11/26/2006 9:29:43 PM PST by devolve ( .................always shop, invest, & hire wisely)
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