Genius Research Paper
Relationship Between Wealth and HappinessThe relationship of money and wealth and how the two tie together can be interpreted many ways. One may say that money cannot buy one’s happiness, while another may say that the key to happiness is wealth and the benefits that come with being wealthy. Studies have been conducted and further show that wealth contributes to one’s happiness.

In a study conducted by Professors Betsey Stevenson and Justin Wolfers of the University of Michigan, they determined that when looking at Nationwide figures, being wealthier leads to a happier life. In 2008, Stevenson and Wolfers proved the Easterlin paradox, a key concept of happiness economics. This paradox argues three major concepts: “1) Within a society, rich people tend to be much happier than poor people. 2) But, rich societies tend not to be happier than poor societies (or not by much). and 3) As countries get richer, they do not get happier." As Stevenson and Wolfers proved the Easterlin paradox, they came to the conclusion that “while the first part of Easterlin’s theory was true—within a country, rich people were happier than poor people—the populations of rich countries, as a whole, were happier than the populations of poor countries.” Stevenson and Wolfers later began their research to find if there is a point of wealth that one can reach where happiness can not be achieved any further, called a satiation point. Using a Gallup poll from 2007, they found people with the highest incomes tend to have the greatest degree of happiness and satisfaction with their lives. Stevenson and Wolfers’s study have proved that wealth has an effect on one’s happiness.

More research done by the Happiness Research Institute, came to the conclusion of “The higher the income, the higher satisfaction with life. Generally, richer countries are happier than poor countries in international happiness surveys.”  Researchers found that among poor people in Third World Countries, a lack of money can have an effect on ones life and that richer countries have higher levels of  happiness. In 2010 Richard Easterlin published a new study that defends his paradox. He investigated data from 37 countries in 12 to 34 years. Case studies from Chile and China, where income per inhabitant has doubled in order 20 years, while the populations´ happiness has not grown at the same rate, were found by Easterlin. According to the World Happiness report of 2012, ”it is the relative income, which affects happiness in rich countries, while the absolute income is more important in Developing Countries.”
While money can have a positive effect on one’s happiness, it can have a negative effect on a person themselves. In an article by Britt Peterson, shows the research on the far-reaching psychological effects of wealth. In her article Peterson expresses, “Rich people have a harder time connecting with others, showing less empathy to the extent of dehumanizing those who are different from them. They are less charitable and generous. They are less likely to help someone in trouble. Even more depressing: These traits are “developed,” not “inherited.”  Even though money is not considered as a bad thing, it can make the way someone behaves or connect with other people. Kathleen Vohs, who was interviewed for this article, explains how wealth can make one insensitive. “They become poor at interpersonal functioning. They’re not all that nice to be around. They’re not openly mean or disagreeable, but they can be insensitive.”  People who have earned or inherited a huge amount of wealth are above everyone else socially. Knowing this, they feel as if they are better than everyone else and become completely careless of anyone else’s feelings but their own. For example, a person who has more wealth may start to think he or she is better than other people, making them more dislikable. With the amount of money they possess, they don’t care as much of what other people think of them just as much as they usually do not care for other people. Overall, money can make people self-centered and difficult for them to have certain type of relationships with other people.

While being rich is a good thing, not everyone is rich. People who are rich tend to be out of the social norm making them deviant. Being deviant can be taken positively as well as negatively. Here in Southern California, the social norm would be middle class citizens. Being below the poverty line is not within our social standards, just like being rich isn't. Someone having a lot more money than other people would be out of our social norm, which makes them deviant.

Research has shown the relationship, as well as the effects, of wealth and happiness. Being wealthy and having large amounts of money increases one’s happiness. Although it can make a person emotional happy, they can develop this way of becoming emotionally unattached from people, insensitive toward others and classified as defiant.