The document discusses research by behavioral economist Daniel Kahneman on how people spend their time based on income level. Kahneman found that wealthy people (over $100,000 income) spend less time in passive leisure like TV watching, and more time commuting and doing required rather than optional activities, like childcare and exercise. Poorer people (under $20,000 income) spend over a third of their time in passive leisure. The research suggests people mistakenly believe wealth will allow more enjoyable leisure time, but it often means less passive leisure and more compulsory activities and stress.
The document discusses Malcolm Gladwell's book "The Tipping Point" which examines how small changes or influences can have large, unexpected effects. It describes key concepts from the book including the "Law of the Few" which explains how a small number of influential people can spread ideas or behaviors, and the importance of "stickiness" and social context in creating epidemics. Examples are given of word-of-mouth epidemics and transformational philanthropic gifts that demonstrate the tipping point phenomenon.
The document discusses different pricing strategies used by companies, including supermarkets. It explains that supermarkets target different types of shoppers with varying prices, such as shoppers indifferent to price versus those watching for bargains. The document also discusses strategies like sales pricing, unique target pricing based on customer profiles, and self-incrimination tactics to learn customer willingness to pay higher prices. Finally, it notes that while price discrimination can be good when balancing profits with affordability, group pricing strategies are sometimes inefficient.
This document summarizes a research study on the export potential of Indian organic produce. Key points:
1) India has potential to access the growing global organic market, estimated to more than treble by 2010, as a leading agriculture producer with a tradition of organic farming.
2) Organic farming uses techniques like crop rotation and manure rather than synthetic inputs. India has an estimated 2.5 million hectares under certified organic cultivation.
3) Major export markets include the US, Europe, Japan, Canada and others. Certification to international standards is required. India is negotiating acceptance of its certification system.
4) Price premiums of 15-30% for organic products provide incentive for farmers
The document discusses the concept of externalities and how pricing can be used to address them. It provides examples of negative externalities like pollution and congestion that pricing schemes could help mitigate. It also discusses objections to congestion charging and alternatives. Additionally, it covers using auctions and permits to reduce pollution and how this has worked with reducing sulfur emissions from power plants. Finally, it discusses challenges around accurately measuring externalities and pricing both positive and negative externalities.
This document provides a summary of chapters from the book "The Undercover Economist" by Tim Harford. It discusses key concepts from economics like scarcity power, price targeting, externalities, asymmetric information, and how applying economic principles helped countries like China grow rich. The summary highlights chapters on topics such as how supermarkets use price discrimination, the idea of perfect markets, traffic congestion as a negative externality, health insurance markets with asymmetric information, and China's economic reforms and embrace of globalization.
1. While more money can increase happiness up to a point, continual increases in income do little to further boost happiness over time. People quickly adapt to their new financial circumstances.
2. Money can potentially lead to more stress through increased responsibilities and social comparisons with similar others.
3. Research finds that spending money on life experiences rather than material goods tends to bring more lasting happiness. Actively making the most of one's experiences enhances well-being.
Sat Essay Current Event Examples. Online assignment writing service.Susan Warner
The document provides background information on Josef Suk's 1894 composition "A Winter's Tale Op. 9". It discusses that Suk based the piece on Shakespeare's work, and that he was influenced by his professor Antonin Dvorak. After Suk married Dvorak's daughter Otilie, who enjoyed playing his and her father's music, Otilie sadly passed away at a young age, prompting Suk to revise "A Winter's Tale".
The document discusses Malcolm Gladwell's book "The Tipping Point" which examines how small changes or influences can have large, unexpected effects. It describes key concepts from the book including the "Law of the Few" which explains how a small number of influential people can spread ideas or behaviors, and the importance of "stickiness" and social context in creating epidemics. Examples are given of word-of-mouth epidemics and transformational philanthropic gifts that demonstrate the tipping point phenomenon.
The document discusses different pricing strategies used by companies, including supermarkets. It explains that supermarkets target different types of shoppers with varying prices, such as shoppers indifferent to price versus those watching for bargains. The document also discusses strategies like sales pricing, unique target pricing based on customer profiles, and self-incrimination tactics to learn customer willingness to pay higher prices. Finally, it notes that while price discrimination can be good when balancing profits with affordability, group pricing strategies are sometimes inefficient.
This document summarizes a research study on the export potential of Indian organic produce. Key points:
1) India has potential to access the growing global organic market, estimated to more than treble by 2010, as a leading agriculture producer with a tradition of organic farming.
2) Organic farming uses techniques like crop rotation and manure rather than synthetic inputs. India has an estimated 2.5 million hectares under certified organic cultivation.
3) Major export markets include the US, Europe, Japan, Canada and others. Certification to international standards is required. India is negotiating acceptance of its certification system.
4) Price premiums of 15-30% for organic products provide incentive for farmers
The document discusses the concept of externalities and how pricing can be used to address them. It provides examples of negative externalities like pollution and congestion that pricing schemes could help mitigate. It also discusses objections to congestion charging and alternatives. Additionally, it covers using auctions and permits to reduce pollution and how this has worked with reducing sulfur emissions from power plants. Finally, it discusses challenges around accurately measuring externalities and pricing both positive and negative externalities.
This document provides a summary of chapters from the book "The Undercover Economist" by Tim Harford. It discusses key concepts from economics like scarcity power, price targeting, externalities, asymmetric information, and how applying economic principles helped countries like China grow rich. The summary highlights chapters on topics such as how supermarkets use price discrimination, the idea of perfect markets, traffic congestion as a negative externality, health insurance markets with asymmetric information, and China's economic reforms and embrace of globalization.
1. While more money can increase happiness up to a point, continual increases in income do little to further boost happiness over time. People quickly adapt to their new financial circumstances.
2. Money can potentially lead to more stress through increased responsibilities and social comparisons with similar others.
3. Research finds that spending money on life experiences rather than material goods tends to bring more lasting happiness. Actively making the most of one's experiences enhances well-being.
Sat Essay Current Event Examples. Online assignment writing service.Susan Warner
The document provides background information on Josef Suk's 1894 composition "A Winter's Tale Op. 9". It discusses that Suk based the piece on Shakespeare's work, and that he was influenced by his professor Antonin Dvorak. After Suk married Dvorak's daughter Otilie, who enjoyed playing his and her father's music, Otilie sadly passed away at a young age, prompting Suk to revise "A Winter's Tale".
The document discusses how people make irrational decisions in systematic ways due to the influence of emotions, social norms, and other factors. It introduces behavioral economist Dan Ariely's research showing that people are predictably irrational, consistently making the same types of mistakes in areas like overpaying, underestimating costs, and procrastinating. Ariely's book aims to help readers understand and avoid these patterns of irrational behavior in their own decision making.
The document discusses various perspectives on money and credit use. It includes hypotheses that increasing access to credit has made it more difficult to talk about debt. Several sections discuss the American Dream and how it has long involved using debt to achieve goals like home ownership. Current events notes that consumer spending drives 2/3 of the economy and credit card use has greatly increased. Lessons learned are usually from parents' relationship with money. Relationships with money can impact romantic relationships if debts are hidden. Psychology shows money impacts emotions and self-image. Habits like overspending and under-saving are common issues. Recommendations include becoming conscious spenders and openly discussing financial matters.
Happiness is like a sack of gold coins. It is the highly prized barometer gauging our status in the world in the most personal of terms. We define ourselves as to how much we possess and compare our happiness to that of others. We look at the handsome couple, holding hands and radiating smiles, concluding that they are happy. We see the successful businessman in his expensive suits and luxury cars, assuming that this person personifies happiness.
The document discusses the importance of money and wealth. It argues that having money is a fundamental human right and that poverty is a curse. It states that anyone can become rich through applying the principles of acquiring wealth, such as earning and keeping more money. Overall, the document promotes the idea that people deserve to be rich and should pursue increasing their wealth.
Here are some of the key problems and challenges with performance management discussed in the literature:
- Lack of clear goals and objectives: Goals and objectives need to be specific, measurable, achievable, relevant and time-bound (SMART) for effective performance management. Often goals are vague or not clearly communicated.
- Bias and subjectivity: Performance ratings are sometimes biased by factors like an employee's likability rather than actual performance. Ratings lack consistency and objectivity.
- Focus on ratings not development: There is often too much focus on performance ratings and rankings rather than development, coaching and continuous feedback. This does not support long-term growth.
- Top-down approach: Performance management is sometimes
Grow rich! with peace of mind - the law of attractionCHIRAGCHAUHAN72
Think and Grow Rich was written by Napoleon Hill in 1937 and promoted as a personal development and self-improvement book. He claimed to be inspired by a suggestion from business magnate and later-philanthropist Andrew Carnegie. It remains the biggest seller of Napoleon Hill's books.
A Sample Speech About Myself Maste. Online assignment writing service.Deep Jones
Based on the information provided, here are the key points I would analyze regarding Brown Forman's financial health prior to acquiring Southern Comfort:
- Revenue and net income had been growing steadily, indicating the company was expanding its top and bottom lines over time. However, revenue and net income growth rates were declining, suggesting slower future growth.
- Advertising expenditures as a percentage of sales were high but stable, showing Brown Forman was committing significant resources to brand marketing, which had fueled past growth.
- Current and quick ratios were healthy but declining slightly, implying working capital was adequate but potential tightening over time.
- Debt levels were moderate and manageable relative to equity. Debt ratios had increased modestly,
The document provides instructions for seeking essay writing help from the website HelpWriting.net. It outlines a 5-step process: 1) Create an account with a password and email; 2) Complete a 10-minute order form with instructions, sources, and deadline; 3) Review writer bids and choose one to complete the assignment; 4) Review the completed paper and authorize payment if satisfied; 5) Request revisions until fully satisfied, with the guarantee of a refund for plagiarized work.
The document discusses the process of ordering essay writing help from the website HelpWriting.net, including creating an account, submitting a request with instructions and sources, reviewing bids from writers and choosing one, making a deposit, reviewing and authorizing payment for the completed work, and having the option to request revisions. The website promises original, high-quality content and a refund if work is plagiarized, aiming to fully meet customer needs.
Money Doesn’t Buy Happiness. Well, on Second Thought . . .If mon.docxmoirarandell
Money Doesn’t Buy Happiness. Well, on Second Thought . . .
If money can’t buy you love, can it still buy you happiness? A now famous 1974 study seemed to indicate that the answer was no. U.S. economist Richard Easterling, then at the University of Pennsylvania, studied comparative data on moderately wealthy and very wealthy countries and concluded that although rich people are happier than poorer people, rich countries are not happier than poorer ones, and they do not grow happier as they grow increasingly rich. The explanation for this apparent paradox, said Easterlin, was that only relative income—your income compared to that of your peers and neighbors—matters to happiness, not absolute income. Now, however, two Wharton professors, Betsey Stevenson and Justin Wolfers, say that the Easterlin paradox, as it has came to be called, does not exist. Based on new research, they say that the truth isn’t paradoxical at all, but is in fact very simple: “1. Rich people are happier than poor people. 2. Richer countries are happier than poorer countries. 3. As countries get richer, they tend to get happier.” Pointing out that 35 years ago Easterlin had little data to work with, Stevenson and Wolfers draw their conclusions from data about more countries, including poor ones, over longer periods of time. Public opinion surveys and other studies show that life satisfaction is highest in richer countries. In the United States, for instance, 9 in 10 Gallup Survey respondents in households making more than $250,000 a year called themselves “very happy,” compared to only 4 in 10 with incomes below $30,000. “On balance,” Stevenson and Wolfers conclude, “GDP and happiness have tended to move together.” The bottom line, they say, is that absolute income matters. What do these new findings mean in practice? A pair of British economists suggest that government’s policy goals should focus less on growing GDP and more on improving measures that directly affect happiness. Easterlin would probably agree. He now concedes that people in wealthy countries do report more happiness than those in poorer countries. But he still doubts that money alone is the reason. Comparing Denmark and Zimbabwe, for instance, he says, “The Danes have social welfare policies directed toward some of the most salient concerns of families—their health, care for the aged, child care. If you ask why the Danes are happier, an alternative hypothesis is they have a set of public policies that deal more immediately with people’s fundamental concerns.” In addition, the tiny Himalayan kingdom of Bhutan has, in fact, replaced GDP with a measure it calls “gross national happiness.”
Critical Thinking Questions
1. What do you think is the role of money as a determinant of a person’s satisfaction at work and with life in general? Should organizations worry about this issue? Explain.
2. As discussed in this chapter, firms vary widely on the extent to which they emphasize money as an incentive. Do you t ...
No Child Left Behind Act Essay Paper. Online assignment writing service.Alisha Wooten
The document discusses the Russian economic crisis from 2014-2016. It notes that while oil prices collapsed and Western penalties continued, Russia's GDP only decreased 0.2% in 2016 and 2.8% in 2015, less than initial estimates. The economy has proven more resilient than expected by adapting production and finding new export markets to replace those in the West. Overall, the Russian economy has weathered the crisis better than anticipated.
How To Write Dialogue In An Essay REduHubCindy Vazquez
This document discusses tobacco cessation counseling and strategies to reduce tobacco use. It notes that tobacco use is the leading cause of preventable death and that increasing tobacco cessation counseling is an important public health goal. The document discusses the Healthy People 2020 objectives around reducing tobacco use and increasing access to cessation methods. It also notes that social determinants like low socioeconomic status are associated with higher smoking rates and challenges with successfully quitting.
The author recalls an experience from his youth where an impoverished street cleaner gave him money for phone calls despite the cleaner's own struggles. This act of generosity shaped the author's career path to help others manage their finances. The document provides advice on researching financial advisors and investment options to make sound decisions and protect one's nest egg for retirement. It warns that overspending, lack of savings, and poor planning are some of the biggest threats to financial security.
The document provides instructions for using an online writing assistance service in 5 steps:
1. Create an account with personal information.
2. Complete a request form with paper details, sources, and deadline to receive bids from writers.
3. Choose a writer based on qualifications, history, and feedback to start the assignment.
4. Review the completed paper and authorize payment if satisfied, with free revisions available.
5. Request revisions as needed, with original, plagiarism-free work guaranteed or a full refund.
Robert Kiyosaki had two fathers - a poor one and a rich one. While both fathers worked hard, the poor father struggled financially his whole life and died with debt, while the rich father became very wealthy and left millions to charity upon his death. Having these two influential fathers with opposing views on money forced Kiyosaki to think critically about their advice and choose his own path. Some of the key differences he observed between their perspectives included views on taxes, risk, home ownership, paying bills, and financial independence. This early exposure to contrasting ideas about money shaped Kiyosaki's thinking and ultimately led him to study wealth creation under the guidance of his rich father.
This document contains 6 sections discussing various topics:
1. The origins and importance of writing, with early cave drawings considered some of the earliest forms of writing.
2. Different styles of writing including expository, descriptive, persuasive, and narrative styles and their key characteristics.
3. Arguments for allowing euthanasia/physician-assisted suicide for terminally ill patients experiencing unbearable suffering.
4. How "half-truths" and omitting important context can mislead people even when just stating true facts.
5. Views that genuine satisfaction and what is obtained from life is often greater in humble homes of the poor than palaces of the rich.
6.
Globalization has impacted Morocco in several ways. It has driven economic integration by allowing companies to start businesses in Morocco, creating jobs and stimulating the economy. It also benefits Morocco by increasing exports and allowing companies to expand their markets. While globalization provides economic opportunities, it also presents cultural challenges as foreign influences change traditional Moroccan culture.
The document discusses how people make irrational decisions in systematic ways due to the influence of emotions, social norms, and other factors. It introduces behavioral economist Dan Ariely's research showing that people are predictably irrational, consistently making the same types of mistakes in areas like overpaying, underestimating costs, and procrastinating. Ariely's book aims to help readers understand and avoid these patterns of irrational behavior in their own decision making.
The document discusses various perspectives on money and credit use. It includes hypotheses that increasing access to credit has made it more difficult to talk about debt. Several sections discuss the American Dream and how it has long involved using debt to achieve goals like home ownership. Current events notes that consumer spending drives 2/3 of the economy and credit card use has greatly increased. Lessons learned are usually from parents' relationship with money. Relationships with money can impact romantic relationships if debts are hidden. Psychology shows money impacts emotions and self-image. Habits like overspending and under-saving are common issues. Recommendations include becoming conscious spenders and openly discussing financial matters.
Happiness is like a sack of gold coins. It is the highly prized barometer gauging our status in the world in the most personal of terms. We define ourselves as to how much we possess and compare our happiness to that of others. We look at the handsome couple, holding hands and radiating smiles, concluding that they are happy. We see the successful businessman in his expensive suits and luxury cars, assuming that this person personifies happiness.
The document discusses the importance of money and wealth. It argues that having money is a fundamental human right and that poverty is a curse. It states that anyone can become rich through applying the principles of acquiring wealth, such as earning and keeping more money. Overall, the document promotes the idea that people deserve to be rich and should pursue increasing their wealth.
Here are some of the key problems and challenges with performance management discussed in the literature:
- Lack of clear goals and objectives: Goals and objectives need to be specific, measurable, achievable, relevant and time-bound (SMART) for effective performance management. Often goals are vague or not clearly communicated.
- Bias and subjectivity: Performance ratings are sometimes biased by factors like an employee's likability rather than actual performance. Ratings lack consistency and objectivity.
- Focus on ratings not development: There is often too much focus on performance ratings and rankings rather than development, coaching and continuous feedback. This does not support long-term growth.
- Top-down approach: Performance management is sometimes
Grow rich! with peace of mind - the law of attractionCHIRAGCHAUHAN72
Think and Grow Rich was written by Napoleon Hill in 1937 and promoted as a personal development and self-improvement book. He claimed to be inspired by a suggestion from business magnate and later-philanthropist Andrew Carnegie. It remains the biggest seller of Napoleon Hill's books.
A Sample Speech About Myself Maste. Online assignment writing service.Deep Jones
Based on the information provided, here are the key points I would analyze regarding Brown Forman's financial health prior to acquiring Southern Comfort:
- Revenue and net income had been growing steadily, indicating the company was expanding its top and bottom lines over time. However, revenue and net income growth rates were declining, suggesting slower future growth.
- Advertising expenditures as a percentage of sales were high but stable, showing Brown Forman was committing significant resources to brand marketing, which had fueled past growth.
- Current and quick ratios were healthy but declining slightly, implying working capital was adequate but potential tightening over time.
- Debt levels were moderate and manageable relative to equity. Debt ratios had increased modestly,
The document provides instructions for seeking essay writing help from the website HelpWriting.net. It outlines a 5-step process: 1) Create an account with a password and email; 2) Complete a 10-minute order form with instructions, sources, and deadline; 3) Review writer bids and choose one to complete the assignment; 4) Review the completed paper and authorize payment if satisfied; 5) Request revisions until fully satisfied, with the guarantee of a refund for plagiarized work.
The document discusses the process of ordering essay writing help from the website HelpWriting.net, including creating an account, submitting a request with instructions and sources, reviewing bids from writers and choosing one, making a deposit, reviewing and authorizing payment for the completed work, and having the option to request revisions. The website promises original, high-quality content and a refund if work is plagiarized, aiming to fully meet customer needs.
Money Doesn’t Buy Happiness. Well, on Second Thought . . .If mon.docxmoirarandell
Money Doesn’t Buy Happiness. Well, on Second Thought . . .
If money can’t buy you love, can it still buy you happiness? A now famous 1974 study seemed to indicate that the answer was no. U.S. economist Richard Easterling, then at the University of Pennsylvania, studied comparative data on moderately wealthy and very wealthy countries and concluded that although rich people are happier than poorer people, rich countries are not happier than poorer ones, and they do not grow happier as they grow increasingly rich. The explanation for this apparent paradox, said Easterlin, was that only relative income—your income compared to that of your peers and neighbors—matters to happiness, not absolute income. Now, however, two Wharton professors, Betsey Stevenson and Justin Wolfers, say that the Easterlin paradox, as it has came to be called, does not exist. Based on new research, they say that the truth isn’t paradoxical at all, but is in fact very simple: “1. Rich people are happier than poor people. 2. Richer countries are happier than poorer countries. 3. As countries get richer, they tend to get happier.” Pointing out that 35 years ago Easterlin had little data to work with, Stevenson and Wolfers draw their conclusions from data about more countries, including poor ones, over longer periods of time. Public opinion surveys and other studies show that life satisfaction is highest in richer countries. In the United States, for instance, 9 in 10 Gallup Survey respondents in households making more than $250,000 a year called themselves “very happy,” compared to only 4 in 10 with incomes below $30,000. “On balance,” Stevenson and Wolfers conclude, “GDP and happiness have tended to move together.” The bottom line, they say, is that absolute income matters. What do these new findings mean in practice? A pair of British economists suggest that government’s policy goals should focus less on growing GDP and more on improving measures that directly affect happiness. Easterlin would probably agree. He now concedes that people in wealthy countries do report more happiness than those in poorer countries. But he still doubts that money alone is the reason. Comparing Denmark and Zimbabwe, for instance, he says, “The Danes have social welfare policies directed toward some of the most salient concerns of families—their health, care for the aged, child care. If you ask why the Danes are happier, an alternative hypothesis is they have a set of public policies that deal more immediately with people’s fundamental concerns.” In addition, the tiny Himalayan kingdom of Bhutan has, in fact, replaced GDP with a measure it calls “gross national happiness.”
Critical Thinking Questions
1. What do you think is the role of money as a determinant of a person’s satisfaction at work and with life in general? Should organizations worry about this issue? Explain.
2. As discussed in this chapter, firms vary widely on the extent to which they emphasize money as an incentive. Do you t ...
No Child Left Behind Act Essay Paper. Online assignment writing service.Alisha Wooten
The document discusses the Russian economic crisis from 2014-2016. It notes that while oil prices collapsed and Western penalties continued, Russia's GDP only decreased 0.2% in 2016 and 2.8% in 2015, less than initial estimates. The economy has proven more resilient than expected by adapting production and finding new export markets to replace those in the West. Overall, the Russian economy has weathered the crisis better than anticipated.
How To Write Dialogue In An Essay REduHubCindy Vazquez
This document discusses tobacco cessation counseling and strategies to reduce tobacco use. It notes that tobacco use is the leading cause of preventable death and that increasing tobacco cessation counseling is an important public health goal. The document discusses the Healthy People 2020 objectives around reducing tobacco use and increasing access to cessation methods. It also notes that social determinants like low socioeconomic status are associated with higher smoking rates and challenges with successfully quitting.
The author recalls an experience from his youth where an impoverished street cleaner gave him money for phone calls despite the cleaner's own struggles. This act of generosity shaped the author's career path to help others manage their finances. The document provides advice on researching financial advisors and investment options to make sound decisions and protect one's nest egg for retirement. It warns that overspending, lack of savings, and poor planning are some of the biggest threats to financial security.
The document provides instructions for using an online writing assistance service in 5 steps:
1. Create an account with personal information.
2. Complete a request form with paper details, sources, and deadline to receive bids from writers.
3. Choose a writer based on qualifications, history, and feedback to start the assignment.
4. Review the completed paper and authorize payment if satisfied, with free revisions available.
5. Request revisions as needed, with original, plagiarism-free work guaranteed or a full refund.
Robert Kiyosaki had two fathers - a poor one and a rich one. While both fathers worked hard, the poor father struggled financially his whole life and died with debt, while the rich father became very wealthy and left millions to charity upon his death. Having these two influential fathers with opposing views on money forced Kiyosaki to think critically about their advice and choose his own path. Some of the key differences he observed between their perspectives included views on taxes, risk, home ownership, paying bills, and financial independence. This early exposure to contrasting ideas about money shaped Kiyosaki's thinking and ultimately led him to study wealth creation under the guidance of his rich father.
This document contains 6 sections discussing various topics:
1. The origins and importance of writing, with early cave drawings considered some of the earliest forms of writing.
2. Different styles of writing including expository, descriptive, persuasive, and narrative styles and their key characteristics.
3. Arguments for allowing euthanasia/physician-assisted suicide for terminally ill patients experiencing unbearable suffering.
4. How "half-truths" and omitting important context can mislead people even when just stating true facts.
5. Views that genuine satisfaction and what is obtained from life is often greater in humble homes of the poor than palaces of the rich.
6.
Globalization has impacted Morocco in several ways. It has driven economic integration by allowing companies to start businesses in Morocco, creating jobs and stimulating the economy. It also benefits Morocco by increasing exports and allowing companies to expand their markets. While globalization provides economic opportunities, it also presents cultural challenges as foreign influences change traditional Moroccan culture.
1. Money Doesn't Make People Happy
Tim Harford 02.14.06, 12:00 PM ET
"The hippies," claimed economist Andrew Oswald recently, “is having their quiet
revenge." Oswald, a professor at Warwick University in England, is one of a growing
number of economists fascinated by the question of what makes us happy. In a recent
public lecture he announced, "Once a country has filled its larders, there is no point in
that nation becoming richer."
That, at least, should bring a smile to a few faces. Economists have suddenly realized that
money can't buy you happiness? This is like the squarest kid at school suddenly
discovering beer, girls and music in his 30s. The rest of the world had worked it out
already.
One of the things that excites economists like Oswald is the ability to compare data on
wealth, education and marital status with the results of happiness surveys. In these
surveys, people are asked such questions as "Taking all things together, would you say
you are very happy, quite happy, not very happy, not at all happy?" Economists have
been trying to make sense of the results across individuals, across countries and across
the years. The headline: Once a country gets fairly rich (though much poorer than the
United States), further economic growth does not seem to make its citizens any happier.
So, money does not buy happiness. Or does it? "In every society, at any point in time,
richer people are happier," points out Will Wilkinson, a policy analyst at the Cato
Institute in Washington D.C., who runs a blog on happiness research and public policy.
"But that in itself doesn't tell you much about the relationship between money and
happiness."
Richer people, after all, tend to have high-status jobs. They tend to have more control
over their lives at work--why pay someone six figures if you're not going to ask her to use
her own judgment? They also have higher expectations and will be comparing themselves
to wealthier people. It's hard to say what is really driving the results: money, status or
expectations.
Perhaps each society's richer people are also happier because happiness comes not from
absolute wealth but from relative wealth--recall H.L. Mencken's quip that "a wealthy man
is one who earns $100 a year more than his wife's sister's husband." A more skeptical
view is that while it means something to compare my happiness with that of the guy
asking me for change on the street, it means nothing to compare my feelings today to
those of my grandfather in 1950--or those of a Portuguese shopkeeper or a Japanese
salaryman.
Wilkinson and economists like Oswald and his compatriot Lord Layard are thinking
about the policy implications of happiness research. My own interest is a little different:
Can the new breed of happiness economists offer us any tips for happier living?
2. Much of the advice is pretty slippery. For instance, married people are much happier than
single people. So perhaps you should get married? (Even better if your fiancée's sister's
husband is unemployed.) Not so fast. More sophisticated surveys show that the causation
runs both ways: Happy people tend to find spouses, while those suffering from
depression don't find it so easy. And--not surprisingly--some people do brilliantly out of
marriage, and others are utterly miserable. As an economist, I'm afraid I have no idea
whether you should propose to that cute girl you've been seeing. (You may or may not
take comfort in Oswald's finding that you can always get out of marriage: People are
happier immediately after a divorce than immediately before.)
Oswald also suggests self-employment, if you can pull it off without losing out
financially. "Everything associated with self-employment--independence, autonomy--is
also associated with being happy."
Both Oswald and Richard Layard argue that relationships are more important than
money--and that includes professional relationships. "I've come to believe in the old-
fashioned view that one should be tender in one's dealings with colleagues," Lord Layard
told me in an interview. And what else? "Think about what you have rather than what
you don't have, both materially and in your relationships and your personal strengths. To
use the language of economics, don't try to rectify things that aren't your comparative
advantage."
This is spiritual thinking from an economist, but Oswald goes one better. If you're
depressed, why not just wait? "There's a kind of J-curve describing happiness over time.
Your late 30s are the most unhappy period of your life, but then the older you get the
happier you are. Life really does begin again at 40."
I think the most useful research, though, is by an honorary economist: Danny Kahneman,
the only psychologist ever to win the Nobel Prize in economics. He asked nearly 1,000
working women in Texas to reflect on their previous day, list the different episodes in it,
what they were doing and how they were feeling.
Some results are predictable enough: Work is miserable, and commuting is worse. Others
are not so obvious. For instance, praying is fun, but looking after the kids is not.
Spending time with your friends is one of the most enjoyable things you can do, but
spending time with your spouse is merely OK. In fact, parents or other relatives turn out
to make more enjoyable company than the supposed love of your life.
What is perfectly clear, though, is that socializing with anyone except your boss makes
you feel good. Sex is best of all. This is handy advice at last. But what if you are having
sex with your boss? Whereof economists cannot speak, we must remain silent.
Tim Harford, a Financial Times columnist, is the author of The Undercover Economist.
3. The story of the rich man
Once upon a time, there was a rich man who decided to give away his wealth.
(fantasy…).When his friends, very wealthy people - rich people know only rich people-
knew about his crazy decision, they flocked to his home asking for a piece of the pie. The
richest man on earth, more than a 100 billion dollar worth, was the first one there. He was
given what he asked for, a few billions…Then came the second richest man for another
few billions, then the third and so on…After a handful of our rich idols were done, the
rich, I mean poor man's wealth was reduced to a mere 97 cents. Very annoyed, he then
decided to give up his remaining wealth to as many people as possible. So he drove by to
the poorest neighborhood in town, giving a whole cent to the first 97 homeless people he
found.
As a matter of fact, the rich man's wealth was almost totally "sucked" by other rich
people…
And there was another rich man, more prudent, and …fond of quantum theory. Just like
his generous fellow, he chose to give up his wealth. However, he added a rule as to the
distribution of his wealth: any recipient would only be allowed to receive whole multiples
of his or her personal wealth. Whoever owns 100, can only receive 100, 200, 300 or any
multiple of 100.Under no circumstances can he get a fraction of 100.
So when the richest man on earth, still thirsty of more wealth, knocked at the wise man's
door and asked for a few billions, his demand was rejected as he couldn't comply with the
new quantum rule: according to this rule, the richest man on earth can only receive a
multiple of his 100 billion dollar wealth. Since the generous man doesn't have that much
funds, the richest man on earth was sent home without an extra penny.
(http://www.library.thinkquest.org)
4. People invariably believe that money can make them happy -- and rich people usually do
report being happier than poor people do. But if this is the case, shouldn't wealthy people
spend a lot more time doing enjoyable things than poor people?
Nobel Prize-winning behavioral economist Daniel Kahneman has found, however, that
being wealthy is often a powerful predictor that people spend less time doing pleasurable
things, and more time doing compulsory things and feeling stressed.
People who make less than $20,000 a year, for example, told Kahneman and his
colleagues that they spend more than a third of their time in passive leisure -- watching
television, for example. Those making more than $100,000 spent less than one-fifth of
their time in this way -- putting their legs up and relaxing. Rich people spent much more
time commuting and engaging in activities that were required as opposed to optional. The
richest people spent nearly twice as much time as the poorest people in leisure activities
that were active, structured and often stressful -- shopping, child care and exercise.
Kahneman and his colleagues argued that many people mistakenly allocate enormous
amounts of their time and psychological focus to getting rich because of a mental
illusion: When they think about what it would mean to be wealthy, they think about how
enjoyable it would be to watch a flat-screen TV set, play lots of sports or get a lot of
pampering -- our stereotypical beliefs of how the rich spend their time.
"In reality," Kahneman and his colleagues wrote in a paper they published in the journal
Science, "they should think of spending a lot more time working and commuting and a
lot less time engaged in passive leisure."
(http://www.washingtonpost.com)