money can buy you happiness Essay

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Money can buy you happiness. Discuss with references to the theory and some empirical evidence on the issue.

The set point theory

According to this theory,the individual propensity to happiness is a personal trait of largely genetic origin and influenced by personality.The explanation for the stagnation of happiness is that happiness is a stochastic phenomenon.Chance distributes unequal amounts of happiness among people’s genetic codes ,leaving the average level unchanged.

The decreasing marginal utility of money. This idea- that of a progressive saturation of needs,or at least of those needs that can be satisified by marketable goods-is general and is consistent with a variety of approaches,including mainstrain growth …show more content…

Indeed the lack of correlation between income and happiness is explained in both cases by the fact that aspirations increase with income. The first three explanations are different versions of the ideas that money cannot buy happiness.This idea is common to all three theories,although it is based on completely different considerations in each of them.In the set point theory,the contention is that no external factor is able to exert a permanent influence on happiness because the latter is a invariant trait.In the second case.growth cannot increase happiness beond a certain level because needs become saturated =or at least those needs whose satisifations can not be bought.In the third case,it is the constant adaptation of aspirations to the growth of income that renders money unable to purchase anything but temporary happiness.

Any money-cant-buy-happiness theory,therefore is consistent with the lack of correlation between income and happiness,but it has a problem:such

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