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Living standards have soared during the twentieth century, and
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economists expect them to continue rising in the decades ahead. Does
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! ?1 C- M% z* H# N6 V2 C6 R4 Dthat mean that we humans can look forward to increasing happiness? : n. ~9 q, _. r, x, Q7 t& h
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8 N$ ~1 Y* I* c' y" u2 }Not necessarily, warns Richard A. Easterlin, an economist at the
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University of Southern California, in his new book, Growth Triumphant:
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2 W# n7 l! d& V' iThe Twenty-first Century in Historical Perspective. Easterlin concedes ; E+ Y( [% n z7 s, n
1 ^4 s# x2 U6 m; E6 W$ d& F Kthat richer people are more likely to report themselves as being happy
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than poorer people are. But steady improvements in the American economy
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4 @5 q3 G6 j& \& Rhave not been accompanied by steady increases in people‘s self-
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' d% d! z2 c4 v* dassessments of their own happiness. "There has been not improvement in . u3 ]; C- x, }3 A% x( Z6 d$ B
2 {; E& k3 n X1 ^ ?) a5 k; E8 |average happiness in the United States over almost a half century----a
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period in which real GDP per capita more than doubled," Easterlin
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7 n- C% ]% y q& lreports.
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The explanation for this paradox may be that people become less 2 j5 R" `# O" M
$ ]4 U* p& W' i6 H/ x! u' q5 Zsatisfied over time with a given level of income. In Easterlin‘s word:
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"As incomes rise, the aspiration level does too, and the effect of this
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3 g7 _* l+ b! v5 ]increase in aspirations is to vitiate the expected growth in happiness ( D7 D4 F; U& d& [
' a" ~/ N/ V) a P% W, m9 wdue to higher income."
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Money can buy happiness, Easterlin seems to be saying, but only if
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9 J+ V2 J7 B+ W, M/ _3 M7 j! u3 a% _one‘s amounts get bigger and other people aren‘t getting more. His * p* k; K% n) \' g( h
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analysis helps to explain sociologist Lee Rainwater‘s finding that 0 h* _" z8 l. H2 U, `
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Americans‘ perception of the income "necessary to get along" rose
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0 N) F% _; i) [1 d5 y: Mbetween 1950 and 1986 in the same proportion as actual per capita
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income. We feel rich if we have more than our neighbors, poor if we ; a* \7 F/ f* B$ T9 {+ U0 A" B
- _7 T' a/ C: mhave less, and feeling relatively well off is equated with being happy.
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; C! Q; E8 g: P: ~Easterlin‘s findings, challenge psychologist Abraham Maslow‘s 6 f6 E/ O5 j( U: @- g- X
* g: ]' S/ a9 x+ X"hierarchy of wants" as a reliable guide to future human motivation. ( s# Z* @% Z( ~5 t5 q
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Maslow suggested that as people‘s basic material wants are satisfied
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" g9 l# r5 c# `: r3 _) Q2 ~they seek to achieve nonmaterial or spiritual goals. But Easterlin‘s
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evidence points to the persistence of materialism.$ ?5 s; [: o6 @8 l2 H) f3 E9 S( w
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"Despite a general level of affluence never before realized in the ' Y; Y9 }1 c" R. o
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history of the world." Easterlin observes, "Material concerns in the
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; j+ P: c8 @+ v! nwealthiest nations today are as pressing as ever and the pursuit of
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material need as intense." The evidence suggests there is no evolution 9 D0 P E$ l8 s! F
8 {3 b: h* W8 A3 a) p9 Vtoward higher order goals. Rather, each step upward on the ladder of . R* E' Z. o/ |. z( [
6 ^# c$ `7 O" Zeconomic development merely stimulates new economic desires that lead
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, l2 Z' P) K3 O- uthe chase ever onward. Economists are accustomed to deflating the money 5 t- B1 U, J5 D4 z- ]
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value of national income by the average level of prices to obtain $ H+ C) z5 a8 P. x3 S$ u; n0 v
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"real" income. The process here is similar----real income is being
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deflated by rising material aspiration, in this case to yield
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2 g2 c4 R9 z. m2 M. s7 s1 Q+ L tessentially constant subjective economic well-being. While it would be
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: P1 k3 d8 z8 O# o+ x xpleasant to envisage a world free from the pressure of material want, a 3 T3 v/ X3 R! A$ W" @+ A. X9 ]9 S
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more realistic projection, based on the evidence, is of a world in ; H4 ]9 x% f2 M0 Z f
5 P4 I5 f; [& a9 O& S Ewhich generation after generation thinks it needs only another 10% to 1 e' P7 |4 F( f- q+ H X' s) v" \
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20% more income to be perfectly happy., @+ s) J9 L8 i8 z7 ?6 x- A7 }, W
8 c' h& `, Q, {1 k) XNeeds are limited, but not greeds. Science has developed no cure for ) N" ]6 J4 @1 r! r* `
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envy, so our wealth boosts our happiness only briefly while shrinking ; Q: Y( C8 l. W; O$ x
/ v4 O4 @# l5 sthat of our neighbors. Thus the outlook for the future is gloomy in / d( ?- I) ~1 y/ X2 l
+ t7 D6 p8 p0 {3 VEasterlin‘s view.
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"The future, then, to which the epoch of modern economic growth is
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, B2 Q( D ?2 [- P, u$ g. b. O, e, ]leading is one of never ending economic growth, a world in which ever 3 n7 x. L+ J8 Y* |+ _0 c
F/ @. R! E/ ?! K! Agrowing abundance is matched by ever rising aspirations, a world in
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, A, a6 P- x; G4 Lwhich cultural difference is leveled in the constant race to achieve
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the goods life of material plenty, it is a world founded on belief in
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science and the power of rational inquiry and in the ultimate capacity 7 j* P8 S* v1 M/ T6 T5 ?1 G" \
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of humanity to shape its own destiny. The irony is that in this last 7 X8 h; M: Z$ H. Q$ a* t
; k g0 \3 Q7 F9 ]. ?- yrespect the lesson of history appears to be otherwise: that there is no
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8 j- i& J+ k* j( Z- K0 p) l; g) ]choice. In the end, the triumph of economic growth is not a triumph of $ D. R! H& ^6 b0 w
7 |+ E* K c! L7 a+ z/ hhumanity over material wants; rather, it is the triumph of material
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wants over humanity." |
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