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Money impacts happiness more than previously thought, study finds
A new study casts doubt on previous research showing that emotional well-being plateaus at an income of $75,000 per year.
- A new study examined how income affects experienced and evaluative well-being, which are two measures researchers commonly use to evaluate happiness.
- The results showed that both evaluative and experienced well-being tend to increase alongside income.
- Still, the results don't suggest you should assign more importance to money, or tie your ideas of personal success to it.
Can money buy happiness?
In 2010, a Princeton University study added nuance to that adage by showing that money does indeed affect happiness, but it stops mattering after you're making about $75,000 a year. People who earned less than that amount tended to report lower levels of emotional well-being, potentially because of stress related to meeting basic needs. But when earning more than $75,000, everyone's more or less equally happy.
However, new research casts doubt on those widely cited findings.
"It's a compelling possibility, the idea that money stops mattering above that point, at least for how people actually feel moment to moment," Matthew Killingsworth, a senior fellow at University of Pennsylvania's Wharton School, told Penn Today. "But when I looked across a wide range of income levels, I found that all forms of well-being continued to rise with income. I don't see any sort of kink in the curve, an inflection point where money stops mattering. Instead, it keeps increasing."
Income and well-being
Published in the Proceedings of the National Academy of Sciences, the study surveyed 33,391 employed U.S. adults ages 18 to 65. As in past studies, the participants answered questions about income and life satisfaction. But the study offered new insights because Killingsworth created a smartphone app that asked participants the question "How do you feel right now?" at random points throughout the day.
This captured the participants' experienced well-being, which is a measure of happiness in the moment. Another way that researchers measure happiness is through evaluative well-being, which examines the "global evaluation" people make of their lives, including general life satisfaction. The new study measured both experienced and evaluative well-being.
Credit: Killingsworth / PNAS
Unlike the 2010 study, the new research found that neither evaluative nor experienced well-being plateaued at the $75,000 income level. In fact, the results showed that both measures of well-being rose along with logarithmic income (which differs from raw income).
"This means that two households earning $20,000 and $60,000, respectively, would be expected to exhibit the same difference in well-being as two households earning $60,000 and $180,000, respectively," Killingsworth wrote. "The logarithmic relationship implies that marginal dollars do matter less the more one earns, while proportional differences in income have a constant association with well-being regardless of income."
Why does money matter?
The study couldn't offer any conclusive explanations for the money-happiness correlation, but Killingsworth suggested a few possibilities.
One is that extra money helps people reduce suffering and increase enjoyment. Another explanation centers on life control: Responses to the question "To what extent do you feel in control of your life?" accounted for 74 percent of the association between income and experienced well-being. Finally, financial insecurities, measured by participants reporting their difficulty in paying bills, accounted for 38 percent of the income-happiness association.
But while income may affect well-being more than previously thought, the new findings don't suggest you should assign more importance to money, or tie your ideas of personal success to income.
After all, "the more people equated money and success, the lower their experienced well-being was on average (P < 0.00001), and there did not appear to be any income level at which equating money and success was associated with greater experienced well-being," Killingsworth wrote.
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"Deepfakes" and "cheap fakes" are becoming strikingly convincing — even ones generated on freely available apps.
- A writer named Magdalene Visaggio recently used FaceApp and Airbrush to generate convincing portraits of early U.S. presidents.
- "Deepfake" technology has improved drastically in recent years, and some countries are already experiencing how it can weaponized for political purposes.
- It's currently unknown whether it'll be possible to develop technology that can quickly and accurately determine whether a given video is real or fake.
The future of deepfakes<p>In 2018, Gabon's president Ali Bongo had been out of the country for months receiving medical treatment. After Bongo hadn't been seen in public for months, rumors began swirling about his condition. Some suggested Bongo might even be dead. In response, Bongo's administration released a video that seemed to show the president addressing the nation.</p><p>But the <a href="https://www.facebook.com/watch/?v=324528215059254" target="_blank">video</a> is strange, appearing choppy and blurry in parts. After political opponents declared the video to be a deepfake, Gabon's military attempted an unsuccessful coup. What's striking about the story is that, to this day, experts in the field of deepfakes can't conclusively verify whether the video was real. </p><p>The uncertainty and confusion generated by deepfakes poses a "global problem," according to a <a href="https://www.brookings.edu/research/is-seeing-still-believing-the-deepfake-challenge-to-truth-in-politics/#cancel" target="_blank">2020 report from The Brookings Institution</a>. In 2018, the U.S. Department of Defense released some of the first tools able to successfully detect deepfake videos. The problem, however, is that deepfake technology keeps improving, meaning forensic approaches may forever be one step behind the most sophisticated forms of deepfakes. </p><p>As the 2020 report noted, even if the private sector or governments create technology to identify deepfakes, they will:</p><p style="margin-left: 20px;">"...operate more slowly than the generation of these fakes, allowing false representations to dominate the media landscape for days or even weeks. "A lie can go halfway around the world before the truth can get its shoes on," warns David Doermann, the director of the Artificial Intelligence Institute at the University of Buffalo. And if defensive methods yield results short of certainty, as many will, technology companies will be hesitant to label the likely misrepresentations as fakes."</p>
Context is everything.
The COVID-19 pandemic has introduced a number of new behaviours into daily routines, like physical distancing, mask-wearing and hand sanitizing. Meanwhile, many old behaviours such as attending events, eating out and seeing friends have been put on hold.
A new study looks at how images of coffee's origins affect the perception of its premiumness and quality.
- Images can affect how people perceive the quality of a product.
- In a new study, researchers show using virtual reality that images of farms positively influence the subjects' experience of coffee.
- The results provide insights on the psychology and power of marketing.