One of the most provocative and widely debated topics in the study of happiness is how it relates to money.
Research by Ed Diener & Martin Seligman, Robert Biswas-Diener, Richard Easterlin, and others suggests that money might boost happiness when it lifts people out of impoverished circumstances, but beyond that, its effects are limited. "More money may enhance SWB [subjective well-being] when it means avoiding poverty and living in a developed nation," write Drs. Diener and Biswas-Diener in a widely cited paper, "but income appears to increase SWB little over the long-term when more of it is gained by well-off individuals whose material desires rise with their incomes."
In this next video, Dacher dives deeper into the research on the relationship between money and happiness.