“Happiness Is Love - And $75,000”

Robison offers an intriguing insight into what occupies the essential elements of our happiness. The data obtained through research of Angus Deaton, Ph. D, a renowned economist and Daniel Kahneman, Ph. D, a Nobel prize-winning psychologist is both enthralling and stimulating. It is explained that people’s happiness is measured on two key aspects, emotional well-being and life evaluation. Emotional well-being consists of a short time frame which is consumed by the individuals everyday experiences and most importantly, social contact. On the other hand, life evaluation contains a broader, overall view. It focuses on our achievements, goals, emotional fulfillment in the long term and financial security. That being said, the most compelling component of this article is the fact that, through deep analysis, researchers have discovered that overall happiness does not increase significantly when earning a household income of over $75,000. It can be described as an almost plateau that is reached, where a satisfactory level has been achieved for an emotionally rich life possessing of enriching and social experiences.

This information did, to a certain extent, surprise me. Due to the general misconception, one of which I am guilty to believing, that money truly leads to happiness. The more you money you have, the more you can buy, the more you can do and see and ultimately, the less you stress. After all, money is most commonly linked to success and if we are successful in our careers, earning good money, why shouldn’t our happiness correlate positively? However, after reading the article with thorough apprehension, I can appreciate and understand why this may not be the case. At $75,000 a sufficient point is reached. Where most would be at a comfortable level of income, with the ability to cover their costs with also an allowance for discretionary purchases. I think a slight element of the Law of Diminishing Marginal Utility creeps into play with those earning in excess of this amount. As mentioned in the article, “A mansion is a thrill the first month you live in it, but it’s just a house the second. ” The satisfaction you first receive from this initial purchase begins to decrease moderately quickly. In essence, not providing as much utility as once expected.

We can also look at the Equi-Marginal Principle in this case. This principle states that consumers will spend their income in such a way as to maximise utility through the choice of combination of goods. So, for each purchase, the price paid and utility received will be equal for each purchase. Therefore, people of higher income may be buying more expensive luxurious goods yet the utility received is consistent with that of a lower earner on a cheaper purchase. I think this accurately demonstrates how you really don’t need much to be happy, a standard amount, like $75,000, suffices and needs are met. The main reasons as to why I think poverty leads to unhappiness are represented in the article precisely. Our emotional well-being playing such a huge part in happiness and being so reliant on our personal relationships is key. But, those suffering from poverty do not have the same freedom to fulfill and nourish these relationships, through activities or commodities.

Also, the stress that people of poverty experience is much difference to those of successful, employed people. As said in the article, “It is worse to be alone, it is worse to be divorced, it is worse to be unemployed, and it is worse to be sick when you’re poor”, simply as you are already dealing with the demons that lack of finance bring. The other hardships of life are an unnecessary addition which greater adds to unhappiness and times of depression. In hard times, everything is heightened by this never-ending burden. It can be considered that governments may in fact be able to aid in the happiness of the greater population through certain policies. There are many key areas that they could aim to trigger, to name a few, employment rates, the health system and poverty cycles. A policy that would increases employment and help workers find jobs would improve happiness levels. It would alleviate the stress and fear of the dreaded job hunting and provide a sense of hope and prosperity in those seeking work.

This could be done through encouragement of entrepreneurship in regards to new setups, also by the attraction of foreign direct investment. In addition, improvements made to the healthcare system would aid, with a possible emphasis on mental health services, something that Ireland as a country lacks in. A greater awareness and access to services would benefit those ‘silent’ sufferers. An increase in income for those of the small percentage of poorest would have a major impact. As, these are people who do not even reach the subsistence level and any increase at all would have the most rewarding of results. Though those in the so called “middle” would not experience significant increases in happiness by this, those of the lower category most definitely would. In conclusion, the article offers insightful information that is surprising in many aspects. It is open to an array of different opinions and responses which adds a powerful element. The research provided could and would prove useful to the government so far as they do show an interest in the standard of living of their citizens and not only their GDP rating.