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Easterlin's classica paper asserts that happiness is not related to the total amount of money you own, but rather to the amount of money you own compared to those around you. The new rebuttal of the theory that this article is about claims that new polling methods have made it easier to get correct answers - and that these do not match the classical theory. The accompanying map shows a clear correlation between a country's GDP per capita and average life satisfaction.

The study, however, is flawed.

What they fail to take into account is that the Easterlin study was made in the 70's when poor countries weren't exposed to the lifestyles of richer countries through media such as television and the Internet. Today even the poorest countries have lots of communication with the outside world. According the CIA world fact book around 20% of Albanias population was online in 2006. And almost everyone had access to television. What this means is that the population in poor countries can see what life is like in Beverly Hills, and see the western lifestyle as their "peers"

So the paradox holds - information technology has just made it obvious to the poor countries how poor they really are.

Correlation does not equal causation....




Hey, I actually am from Albania. I was born in 1980, so my first 10 years were under comunism. People were poor, but there was more equality. So, when you saw around you how everybody was doing about the same, then you didn't feel that bad. The lack of general resources, made people and families to be much more connected, as you had to rely more on your family (not just the inner circile, but everybody, from uncles, aunts, third cousins, etc).

When comunism fell, some people started making more money, getting new cars, houses on the beach, while some were left with less, which obviously made them unhapier. They might be slightly better off than in comunism, but they were much worse than their peers.

Well, accoding to Kant's principles, is the extra hapinness gained by those that made it well, worth equal or more than the happiness lost by those that are faring less well? It is a very hard thing to quantify.

But even in the 80s, we could watch Italian TV, so we kinda new that the rest of the world was doing much better, (and eventually overthru our comunist goverment), BUT everybody around us was doing about the same.

My mom told me a while ago; well we are doing much better economically (as a family), and have a lot more now, BUT we seemed to be a lot happier back than.


Information technology has just made it obvious to the poor countries how poor they really are

Not just information technology, but cheap air travel. A lot of people from poor countries have come to work for a while in their uncle's shop in the US.


I wonder if happiness is rising in wealthy countries because it has also become obvious (to anyone who looks) how much richer they are than people in poorer countries.


I wouldn't just separate the poorer countries into their own category. Now with everyone watching the same TV (with probably a much higher emphasis now on lifestyles than in the 70s), even the poor in the US should start feeling the same way as the 3rd world countries.

Clearly their feelings wouldn't be the same but I imagine that there would still be some resemblance.


"peers", exactly. The same effect occurs locally too (friends, neighbours, colleagues, people you went to school with, etc...) and not just with money, but all indicators of status.

There's an interesting book by Alain de Botton called Status Anxiety that basically argues how increased opportunity can increase anxiety (which is roughly the inverse of happiness).




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