Income and happiness: earning and spending as sources of discontent

Abstract

Richard Easterlin's 1973 query, “Does Money Buy Happiness?” began what has become a major source of research among social scientist. Easterlin's initial answer was “no,” at least in absolute terms. Subsequent research has been inconclusive regarding the extent to which money matters, ranging from a great deal to little if any. The latter conclusions fly in the face of much of human behavior, as we know it. I argue that money matters a great deal. Problems arise, however, in the fact that it must be earned and spent. Two areas often neglected in the literature. Changes in both the nature of work and of consumption have themselves been the source of increasing dissatisfaction, particularly in the United States over the past generation. The work of Scitvosky, Linder, and Schor, among others provides the background for the analysis.