Subjective happiness and the Easterlin Paradox Flashcards
(5 cards)
what is subjective happiness
refers to self reported levels of happiness with ones life
- measuring subjective happiness usually involves considering emotion rather than asking abt material well being
factors that may affect subjective happiness
- personality
- genetics
- social influences - eg network of friends
- health
- ability to enjoy leisure time
what is the easterlin paradox
The Easterlin Paradox states that at a point in time happiness varies directly with income, both among and within nations, but over time the long-term growth rates of happiness and income are not significantly related
how might a fall in real incomes affect subjective happiness
💸 Decrease in Financial Security
A fall in real incomes means individuals have less disposable income →
This reduces their ability to meet basic needs and maintain a comfortable lifestyle →
As a result, people may experience increased stress, anxiety, or worry about the future →
These emotional responses are likely to reduce subjective happiness as financial security is a key factor in well-being.
🏠 Lower Standard of Living
A fall in real incomes limits the ability to purchase goods and services that enhance quality of life →
People may have to cut back on leisure activities, travel, or non-essential purchases →
This can lead to a perceived decline in living standards and less enjoyment of life →
The reduction in consumption can directly lower individuals’ overall happiness and satisfaction.
🌱 Social Comparison
A fall in real incomes may lead individuals to compare themselves negatively to others who are better off →
This can foster feelings of inadequacy or resentment, reducing their sense of well-being →
Social comparisons, especially in consumer-driven societies, are closely linked to subjective happiness →
The sense of not “keeping up” with peers or society’s expectations can lower self-esteem and happiness.
💡 Resilience and Adaptation
Over time, individuals may adapt to the new income level through changes in lifestyle and expectations →
Research shows people often adjust their expectations and baseline happiness levels after financial setbacks →
This phenomenon of “hedonic adaptation” may mitigate the initial negative impact on happiness →
In the long run, subjective happiness might not fall as much as expected, especially if basic needs are still met.
🧠 Evaluation Points (It depends on…)
🌍 Cultural and Social Context
It depends on the cultural and social context in which individuals live →
In some cultures, subjective happiness may be more closely linked to community, relationships, or spiritual well-being →
A fall in income may have less of an impact on happiness if individuals have strong social support networks or place high value on non-material aspects of life →
In contrast, in consumer-driven societies, a fall in income may have a more pronounced effect on happiness.
🏡 Income Distribution and Relative Poverty
It depends on income distribution within a society →
In societies with high income inequality, a fall in income may lead to greater relative poverty, exacerbating feelings of dissatisfaction →
In more equal societies, the fall in income may not have as severe an effect, as individuals are less likely to experience relative deprivation →
This suggests that the impact of income changes on happiness can vary significantly depending on the context of wealth distribution.
🧑🤝🧑 Psychological Factors and Coping Mechanisms
It depends on individual psychological factors and coping mechanisms →
Some individuals may cope better with a fall in income, focusing on aspects of life other than material wealth →
Others may struggle with a loss of income and experience significant declines in subjective happiness →
Therefore, the effect of falling real incomes on happiness can vary depending on personality traits, social support, and resilience.
Assess impact of rising incomes on subjective happiness
💰 Improved Financial Security
An increase in incomes allows individuals to meet their basic needs more comfortably →
This increases their sense of financial security and reduces stress or anxiety about daily expenses →
With financial security, people are more likely to feel content and at ease about their economic situation →
As a result, subjective happiness tends to rise as individuals feel more stable and secure in their lives.
🏠 Enhanced Standard of Living
Higher incomes enable individuals to access better goods and services, improving their standard of living →
They may be able to afford better housing, healthier food, and more leisure activities →
This directly contributes to improved well-being and a higher quality of life →
The ability to enjoy these material comforts increases subjective happiness by enhancing overall satisfaction.
🌟 Increased Social Status and Comparison
Higher incomes can elevate an individual’s social status, contributing to a positive sense of self-worth →
As income increases, individuals may be able to afford experiences or possessions that allow them to “keep up” with peers →
This reduces feelings of inadequacy, improving subjective happiness →
However, this increase in income can also make individuals more sensitive to social comparisons, which can be a double-edged sword.
🧘♂️ Greater Opportunities for Leisure and Personal Development
Increased income opens up opportunities for leisure activities, travel, and personal development →
This promotes happiness as individuals can spend their time doing things they enjoy or investing in self-improvement →
Time spent on hobbies, vacations, or experiences can boost life satisfaction →
The ability to afford these activities leads to an overall increase in subjective happiness.
🧠 Evaluation Points (It depends on…)
🌍 Cultural and Societal Context
It depends on cultural and societal norms →
In some cultures, happiness may not be as heavily tied to material wealth, and people may derive greater satisfaction from non-material factors like community, spirituality, or family →
In these contexts, increasing income might have a less significant effect on subjective happiness →
In contrast, in highly consumer-driven societies, the impact of income increases on happiness may be more pronounced.
👨👩👧👦 Social and Family Environment
It depends on the individual’s social and family environment →
Higher incomes may lead to better living conditions for a family, thus improving overall happiness →
However, for individuals without strong social ties or family support, increased income may not translate to greater happiness →
In some cases, financial success may lead to social isolation or stress within relationships, reducing the potential happiness benefits.
💡 Diminishing Returns to Income
It depends on the principle of diminishing returns to income →
Research suggests that the impact of increased income on happiness is larger at lower income levels →
Once basic needs are met and income rises beyond a certain threshold, the additional increase in happiness becomes smaller →
Thus, increasing incomes might not significantly improve happiness once individuals reach a comfortable income level.
🏙 Increased Cost of Living
It depends on the cost of living in the area where the income increase occurs →
In high-cost areas (e.g., large cities), an increase in income might not significantly improve happiness if the cost of living rises at a similar rate →
In such cases, while incomes may increase, the real purchasing power may not improve much, limiting the positive impact on subjective happiness →
In lower-cost areas, however, an income increase can lead to a more significant improvement in living standards and, therefore, happiness.
