Can money buy happiness? One way to explore this question is to ask whether money buys the constituents of happiness—and there’s no better-researched or more powerful constituent than social connections.
Yet even for this question, about money’s link to social connections, there is no clear-cut answer. Two new studies offer conflicting evidence, one suggesting that people with higher incomes spend less time socializing, and another suggesting that they feel less lonely. What’s actually going on here?
The second study looked at loneliness, the presumed antithesis of feeling loved and a sense of belonging, and a factor that correlates with less happiness. The researchers define loneliness as “a perceived discrepancy between desired and actual social relationships; a perceived lack of control over the quantity and especially the quality of one’s social activity.”
It’s perilously easy to come away from this study assuming that more is always better. Because lower income predicted higher loneliness, increasingly higher and higher income should make a person progressively less and less lonely.
Taken together, these studies paradoxically suggest that while higher-income people spend less time socializing, they claim to be less lonely.
In trying to reconcile this, we might first consider research on wealth and power that shows that greater privilege—whether hard-earned or assigned in a laboratory experiment—is associated with a more self-focused, socially aloof demeanor. Defining loneliness in terms of “control” and “desired quality and quantity,” and given powerful people’s tendency to assume control and devalue others, perhaps self-rated loneliness amongst the rich is bound to drop. Rather than charting the actual strength or abundance of social connections, however, this drop reflects less interest in them: I’m not lonely—I’m just not really interested in connecting with others.
In 1974, Richard Easterlin noted that despite the promise of steadily increasing per-capita GDP, national happiness levels plateaued in the mid-1960s, though per-capita GDP continued to rise. In the forty years since, researchers have scoped big data to report patterns in both directions: Income does, in fact, predict happiness (Justin Wolfers), income doesn’t predict happiness (Easterlin, again), income does predict happiness, income doesn’t predict happiness, income does predict happiness—but only up to $75,000 per year (Nobel Prize winner Daniel Kahneman).
In researching the link between money and happiness, large survey research tends to rely on people’s intuitive sense of what happiness means—simply asking them to rate themselves on a scale from “not at all happy” to “very happy”—and uses responses to examine factors that predict high levels of happiness. But one perspective that promises to bring clarity has been to think more deeply about happiness, and what being happy actually means.
The sages always say that money can’t buy happiness; all you need is love. Popular media begs to differ, alongside grandstanding doctrines like Objectivism and Machiavellianism: Work hard to earn, save, and squirrel away your largest possible personal fortune, and guard it at all costs. What does the research say? People who fall into the category of “very happy” always have strong social connections. However, the apparent paradox from these studies—that richer people spend less time socializing but say they feel less lonely—warrants further scientific inquiry into the interplay between wealth, social connection, and happiness.
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