Money buys happiness

The New York Times wrote today that maybe the Hippies were right all along.

Two young economists from the University of Pennsylvania have presented a paper that argues money tends to buy happiness, even though it doesn't guarantee it. The central message is that income does matter.

In the United States, about 90 percent of people in households making at least $250,000 a year called themselves “very happy” in a recent Gallup Poll. In households with income below $30,000, only 42 percent of people gave that answer.

Economic growth can also pay for investments in scientific research that lead to longer, healthier lives. It can allow trips to see relatives not seen in years or places never visited. When you’re richer, you can decide to work less — and spend more time with your friends.

Recent research has also found that some of the things that make people happiest — short commutes, time spent with friends — have little to do with higher incomes.

The article ends with a poignant remark: At a time when the American economy seems to have fallen into recession and most families’ incomes have been stagnant for almost a decade, it’s good to be reminded of why we should care. Not only is gas too expensive but people may be sadder and less affectionate, optimistic, or forgiving. Let's not forget to be kind. :)