Easterlin Paradox

Within a country, the rich are happier than the poor. But compare countries across decades of growth, and the happiness barely moves. Money works, and then it doesn't — this puzzle has a name.

The resolution is comparison. We do not feel wealth; we feel relative wealth. The man whose income doubles while everyone's doubles feels no richer, because his reference points rose with his salary. Happiness keeps score against the neighbours, and the whole neighbourhood can rise together without anyone gaining.

This is not a plea for poverty — money buys real relief from real misery up to the point where needs are met. Beyond that point, it buys mostly position, and position is a game where half the players must lose.

The practical translation: chase income until the basics are secure, then chase what does not inflate — health, friendship, skill, meaning. The neighbours cannot outbid you for those. Choose games where your rising does not require someone else's falling.