Psychology 06 money happiness

Money and Happiness I Beliefs about importance of money Research: Two-minded view No: Asked to define “good life” or describe determinants of satisfying life money not mentioned at all or near bottom (11th of 12) Don’t believe money has much to with happiness in final analysis Copyright © 2009 Pearson Education, Inc., Upper Saddle River, NJ 07458  All rights reserved Then again, yes: Focus on own life… what would increase quality of life? What prevents you from achieving the good life? Money most frequent answer True regardless of how much you actually make $30,000 say $50,000 will make you happy $100,000 say $250,000 will it, etc… What is money good for? What is the appeal? What does money provide even if doesn’t make you happy in the long-term? Copyright © 2009 Pearson Education, Inc., Upper Saddle River, NJ 07458  All rights reserved Two-Minded View I Money important in fulfilling basic needs Survival versus struggle - homeless Safety & security versus no safety net - insecure -health insurance Freedom/self control versus few choices - can’t lead life you desire Self-determination versus can’t express talents, values, etc Comfort/entertainment versus distress/boredom - no diversions & R&R High social status versus low status - feel inferior Bottom line: Basic needs powerful - fulfillment satisfying Copyright © 2009 Pearson Education, Inc., Upper Saddle River, NJ 07458  All rights reserved II Unraveling the Two-Minded View Most experience real or vicarious economic distress Money important for security, comfort, etc. easy to believe more money increases comfort, control, etc (Vitamin C) threshold -diminishing returns Easy to confuse comfort/security with happiness - i.e necessary but not sufficient conditions to be happy Easier to look outside than inside the self for happiness/better life Culture - celebrity culture & how define “doing well.” Copyright © 2009 Pearson Education, Inc., Upper Saddle River, NJ 07458  All rights reserved Value of Money Helps fulfill basic needs and avoid distress of unfulfilled needs that are critical necessary conditions of good life Money is necessary but not sufficient condition for happiness Foundation for but not basis of “Enough” money brings life to zero/neutral psychological & social factors then determine happiness Research Summary - Basic Need / Money Threshold - Beyond threshold money brings diminishing returns in increased happiness - Over-concern about money source of unhappiness Copyright © 2009 Pearson Education, Inc., Upper Saddle River, NJ 07458  All rights reserved Research Evaluating Money-Happiness Connection II Between-Nation and Within-Nation Comparisons Between Correlations of r =.50 to 70 between per capita income and subjective well-being (happiness) Income and happiness not always related – few surprises Within Substantially lower correlations – across 40 countries r =.13 United States r =.15 Curvilinear relation…money matters most at low income levels Highest correlations money-happiness in poor countries – Calcutta slums of India r =.45 – Money and fulfillment of basic needs Copyright © 2009 Pearson Education, Inc., Upper Saddle River, NJ 07458  All rights reserved Interpreting National Differences Affluent Countries Reach GNP level of $10,000 per year - no relation United States - $50,000-60,000 per year - more money does not increase happiness Why Between-Within Difference? Between based on money-happiness of two numbers for each country Small differences become significant correlations Within – average across individuals for single country… picks up all factors other than money that contribute to happiness…e.g., extroversion, optimism., self-esteem… Copyright © 2009 Pearson Education, Inc., Upper Saddle River, NJ 07458  All rights reserved Complication: More than money varies with wealth of nations Services, freedom, democracy, individual rights, health care, etc… Not clear money is the major factor Copyright © 2009 Pearson Education, Inc., Upper Saddle River, NJ 07458  All rights reserved Does Increasing Affluence Bring Increasing National Survey Data –1956-1998 – Income up / Happiness? happiness flat 7.0 on 10-point scale - (1) unhappy to (10) extremely happy 10-fold increase in rates of depression,especially among young True for all advanced industrialized countries Increases in teen suicide, delinquency, teen pregnancy Copyright © 2009 Pearson Education, Inc., Upper Saddle River, NJ 07458  All rights reserved Overall Beyond money necessary to meet basic needs money largely unrelated to happiness Longitudinal studies – for individuals, increased income not related to increased happiness Decreased, unless dramatic also not related Copyright © 2009 Pearson Education, Inc., Upper Saddle River, NJ 07458  All rights reserved Lottery Winners versus Accident Victims Brickman, Coates Janoff-Bulman JPSP -78 Participants: 22 - Illinois lottery winners - from $50,000 to million 19 - accident victims - 11 paraplegics & 18 quadraplegics Phone interviews DV: Happiness, satisfaction & pleasure Past Present Future Winners 3.77 4.00 4.20 Controls 3.32 3.82 4.14 Victims 4.41 2.96 4.32 Everyday 3.33 3.82 3.48 Other studies: Over time lottery winners often less happy than before winning Copyright © 2009 Pearson Education, Inc., Upper Saddle River, NJ 07458  All rights reserved Rising Expectations - Always gap between what have and what want Each higher level of income brings new expectations Yesterday’s wants become today’s needs – never satisfied Having a TV, CD player, cell phone, computer any big deal these days?…65% of under-18-years have TV in bedroom…average home has sets… pretty common - One survey: 84% think good life now includes a vacation home Copyright © 2009 Pearson Education, Inc., Upper Saddle River, NJ 07458  All rights reserved Social Comparisons -Keeping up wth Jones….kids Relative Deprivation – how much have evaluated by relative not absolute standards - most Americans “rich.” Do we really need an SUV? - independently decided had to have one? Get bigger house in neighborhood of big houses…not look so big Copyright © 2009 Pearson Education, Inc., Upper Saddle River, NJ 07458  All rights reserved Research Evaluating Social Comparison Mixed support for social comparison effect on happiness People with moderate incomes living in wealthy or poorer neighborhoods not differ in happiness (Europe, like our states) - Happiness of people living in affluent countries higher if neighboring is also affluent versus poor Copyright © 2009 Pearson Education, Inc., Upper Saddle River, NJ 07458  All rights reserved Restricted & self-relevant comparisons rather than “any” comparison to those doing better than us…do we compare to Bill Gates…Donald Trump? Not passive victims…choose our comparisons Make local and personalized comparisons At work….most upsetting comparison - result? - Critical variable is self-relevance – does the comparison involve something that defines your self? Examples: pride in garden & yard versus neighbor who does better… - Man defines self as primary breadwinner—but wife makes more or is very successful in charitable organization work…one a threat other not Copyright © 2009 Pearson Education, Inc., Upper Saddle River, NJ 07458  All rights reserved Materialism and Psychological Basis of Happiness Money only tangentially related to things known to contribute most to personal happiness… relationships, competence, autonomy, personal expressiveness, personal growth, religion, etc… - Excessive materialism mortgages happiness Copyright © 2009 Pearson Education, Inc., Upper Saddle River, NJ 07458  All rights reserved Evaluate from Self-determination Theory Not Rich Autonomy – freely chosen, expressive Are Rich - imposed by others personally - impress others - others’ expectations Competence - effective/growth, challenge/change - hate job, boring, stagnant, just for $$ Relatedness – happy marriage, love, intimacy - meaningful friendships - unhappy marriage -few supporting relations Copyright © 2009 Pearson Education, Inc., Upper Saddle River, NJ 07458  All rights reserved The Meaning of Happiness: Relative or Universal? I National Comparisons Only meaningful if same understanding of happiness Japan – Mexico – Brazil – U.S – Canada – Chile – India Same or different ideas about meaning and importance of happiness? Western bias? Copyright © 2009 Pearson Education, Inc., Upper Saddle River, NJ 07458  All rights reserved A Arguments / Data for Universality Happiness as a universal goal Surveys of college students 42 countries – 69% say happiness & 62% say life satisfaction very important life goals Language equivalence -Translation does not seem to be problem… Swiss much higher happiness than French, Germans, & Italians All three languages spoken in Switzerland Happiness levels unrelated to language spoken -Back translations….over and over… Copyright © 2009 Pearson Education, Inc., Upper Saddle River, NJ 07458  All rights reserved “For” Universality Different measures…global Faces ESM, worst & best life…all show same pattern of national differences…how you ask it not matter Happiness important to quality of life in all societies Each may define goals, ways to achieve or basis differently Fulfilling culturally-defined goals & values should increase satisfaction (outcome) however goals and values defined in particular culture Copyright © 2009 Pearson Education, Inc., Upper Saddle River, NJ 07458  All rights reserved Against Universality Cultural Differences Most research focused on western versus East Asian cultural differences in self-concept and values Japan very rich but low SWB…culture or less happy? Western Conceptions of Self Individualism and an independent self Self-concept conceived and lived as separate from others Each person possesses traits & personal qualities that define them as unique individuals Twenty statements test… “I am” Self definition independent of context and relationships Same person wherever we go… Squeaky wheel gets the grease - stand out - call attention stick to your guns…pursue your unique dreams Copyright © 2009 Pearson Education, Inc., Upper Saddle River, NJ 07458  All rights reserved Asian Conception of Self Interdependent and collectivist conception of self: Self-concept defined by relationships to others I am daughter, citizen, employee, etc Self defined by context: I am at work with my parents at school Self-esteem & value heavily dependent maintaining favorable relations with others Nail that stands up gets pounded down Fit in, don’t offend by being thinking or showing you are “better” than others Follow roles, rules, respectful attitude towards others Copyright © 2009 Pearson Education, Inc., Upper Saddle River, NJ 07458  All rights reserved Happiness American Style Cultural idea: Happiness important cultural goal and criteria for making choices, Life liberty and pursuit of happiness… Should be happy/enjoy …….work, friends, marriage, college Emotional expressiveness: Encourage expressing and following what makes you happy Pride in individual achievement - stand out - stick to guns Self-enhancement: Research…feel better than average Attributions for success and failure Copyright © 2009 Pearson Education, Inc., Upper Saddle River, NJ 07458  All rights reserved Cultural message - Find what makes you happy and go for it… - Kids…develop those interests, traits & talents that express your uniqueness and individuality….then you’ll be happy - Happiness results from pursuit of individualism -Don’t let others compromise or get in way “Be true to self.” Research Majority of westerners are happy…79-83% Self-esteem more strongly related to happiness in individualistic than in collectivist cultures Happiness means happiness with self Copyright © 2009 Pearson Education, Inc., Upper Saddle River, NJ 07458  All rights reserved Asian Style of Happiness Cultural ideals: Happiness not a central goal of life More emphasis on moderation and balance Unlikely to say “very” happy on SWB measure Moderation in emotional expression: Eastern philosophy – emotions like weather…sunny then rain Best not to hold onto them because they are impermanent Keep composure…don’t lose self in fleeting emotions Accept what is rather than striving for or trying to avoid happiness or unhappiness Pride and sensitivity to groups: Higher satisfaction than your group than when individual succeeds Self-critical attitude, humility, and modesty are valued: Expressing self-critical attitude invites sympathy & support and positive view from others “If you can’t admit your shortcomings don’t expect sympathy or support from others.” - Nail that stands up gets pounded down Copyright © 2009 Pearson Education, Inc., Upper Saddle River, NJ 07458  All rights reserved ... Research Summary - Basic Need / Money Threshold - Beyond threshold money brings diminishing returns in increased happiness - Over-concern about money source of unhappiness Copyright © 2009 Pearson... life Money is necessary but not sufficient condition for happiness Foundation for but not basis of “Enough” money brings life to zero/neutral psychological & social factors then determine happiness. .. Evaluating Money- Happiness Connection II Between-Nation and Within-Nation Comparisons Between Correlations of r =.50 to 70 between per capita income and subjective well-being (happiness) Income and happiness