Final answer:
Recent studies indicate that while wealth can enhance life satisfaction, it may not significantly increase long-term happiness compared to the effects of cultivating relationships and experiences. Lottery winners do not report a sustained increase in happiness, emphasizing the importance of non-material factors in subjective well-being.
Step-by-step explanation:
The research on the relationship between money and happiness reveals diverse findings. Studies by Quoidbach et al. (2010) and Johnson & Krueger (2006) suggest that wealth may lead to happiness but with caveats. The dual effect of wealth on happiness suggests that while money can provide comforts and satisfy basic needs enhancing life satisfaction, it may not always lead to a proportional increase in everyday positive emotions. Furthermore, Brickman et al. (1978) and Lutter (2007) found that lottery winners are not significantly happier than before winning, advocating for the fleeting nature of such wealth-induced happiness.
Diener et al. (2010) contrast material prosperity, which predicts life evaluation, with psychosocial prosperity, such as deep and meaningful relationships, which predicts positive feelings. This aligns with the findings suggesting that relationships and experiences play a more critical role in long-term happiness than material possessions. Kahneman and Deaton (2010) found that while high income improves life evaluation, it does not significantly boost emotional well-being, highlighting the complex relationship between income and happiness.
In summary, the quest for happiness through the acquisition of wealth or material goods is often less effective than fostering personal relationships and engaging in enriching experiences. While financial stability is certainly important for a sense of security and well-being, it is not the sole determinant of subjective happiness.