Subsequently, Kahnemann and Deaton have found that while life satisfaction, a judgment about how one’s life is going overall, does continue to rise with income, the quality of subjective experience improves until an annual income of about $75K and then plateaus. They conclude that “high income buys life satisfaction but not happiness [i.e., subjective experiential quality], and that low income is associated both with low life evaluation and low emotional well-being.”
What’s average world income? About $8K per year! The typical experience of a human being on Earth is “low life evaluation and low emotional well-being” due to too little money. How many times does global GDP need to double in order to put the average person at Kahnemann’s $75K hedonic max-out point? Three and change. But life satisfaction ain’t worth nothin’, and it keeps rising. And, of course, rising income doesn’t just correlate with rising happiness, but with better health, greater longevity, more and better education, increased freedom to choose the sort of life one wants, and so on. If it’s imperative to improve the health, welfare, and possibilities of humanity, growth is imperative.
Do you know how the $75,000 was reached? More specifically, I’m wondering where holder of the $75,000 is located. Is it specifically an amount of 75k where life satisfaction plateaus or is it a certain standard of living that would require more or less funds if the random plateaued person was in a different city? If they both earn the same amount, does someone from Oklahoma City have an equivalent amount of satisfaction as one in Palo Alto?
Wrong.
Why Economic Growth Totally Is Imperative
This quote does not mean “anyone earning less than happiness-plateau-level money has a life not worth living”.
Do you know how the $75,000 was reached? More specifically, I’m wondering where holder of the $75,000 is located. Is it specifically an amount of 75k where life satisfaction plateaus or is it a certain standard of living that would require more or less funds if the random plateaued person was in a different city? If they both earn the same amount, does someone from Oklahoma City have an equivalent amount of satisfaction as one in Palo Alto?