In a randomized test researchers were surprised to find that money did not in fact buy happiness:
The data reveal that participants spent the windfall of cash fairly quickly, with increased expenditures dwindling down the UCTs within a matter of weeks. Interestingly, the increase in expenditures did not translate to positive differences on the pre-registered financial, psychological, cognitive capacity, and health survey outcomes, neither between the Control and cash groups, nor between the two cash groups. If anything, the results show that relative to the Control group, cash groups reported worse financial, psychological, and health (but not cognitive capacity) outcomes for our prespecified analyses.
The researchers go on to speculate that receiving the money caused the recipients to think about money more, thereby decreasing their happiness.
I am surprised the researchers were surprised.
There’s been a long list research showing money doesn’t make one happier after a level of income to ensure “necessities†are met.
And that finding has been known since Biblical times; see Ecclesiastes 5, 6.
Agree with CO. If you are really poor a small windfall doesnt change much. You are still really poor you just arent as far behind on some of the bills. Or maybe you catch up but it just means you will behind again soon.
Steve