Why wouldn't having more money always equal happiness?

The belief that money brings happiness has been a topic of debate for many years. Some argue that income should not be inherent to a person's mood, putting issues such as personal growth and the value of loved ones first. Others argue that income allows for various activities that, in one way or another, brighten up everyday life.

This discussion has its origins in the 1970s, when American economist Richard Easterlin , considered by many experts as the "father of happiness economics," began analyzing the direct relationship between income and happiness, finding that while money can be used to improve the quality of life, it is not a guarantee of sustained happiness. This is known as the Easterlin paradox .

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The American economist discovered that within the same country, people with greater purchasing power have higher levels of happiness , but when comparing countries, he found that more wealth does not guarantee greater happiness.

In this context, it can be understood that if a country's gross domestic product (GDP) grows, that nation's average happiness remains stable. In other words, money can improve well-being to a certain extent, but it doesn't guarantee that happiness will be sustained throughout life.

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Therefore, whether money can bring happiness depends on the economic conditions of each country. In developing nations, increased incomes boost happiness levels more by covering basic needs. In developed countries, however, money doesn't carry as much weight, so accumulating more wealth doesn't translate into greater happiness .

Why not always?

According to the economist, there are two situations that make this possible:

1. Social comparison: People often evaluate their success or well-being in relation to their environment. A pay raise doesn't lead to greater happiness if it also improves the lives of those in their immediate circle.

2. Hedonic adaptation: People quickly get used to material improvements. For example, the positive effect of getting a new car or receiving a pay raise fades over time.

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