Economics of happiness and human adaptation

Humans adapt to their lot over time. If last year was a bad economic year, and even the slightest improvement this year, would make people, on average, happier. But that happiness dissipates over time, that is, assuming everything else stays the same, our happiness gained from the improvement this year will lessen next year, and lessen by even more the following year and so forth.

A more pertinent illustration: couples are, on average, happiest in their first year of marriage, coming from unwedded to wedded. But the bliss of marriage dissipates with increased number of marriages. So the cliched honeymoon period is true. This is not the narrative of a soap opera; this is the academic field of the economics of happiness.

On a more positive note stemming from the same academic work, is that the misery of being thrown into prison also dissipates with time. This is because, according to theory, is that we humans adapt to our situations, good or bad, over time, on average. Time, then, does seemingly heals wounds, but also makes us take for granted the good things that happen.

I guess, in this light, perhaps we will know the world will bounce back after this economic crisis. But my greatest worry is that some might not even survive this crisis to see themselves bounce back.

Perhaps more on this later. Do you have any thoughts on the economics of happiness?




Uncle T