Easterlin Paradox

The Easterlin Paradox is the observation that, beyond a certain point, increasing a nation's average income doesn’t lead to greater overall happiness among its citizens. While wealth can improve life satisfaction at local or individual levels, once basic needs are met, additional income doesn’t significantly boost happiness for the population as a whole. Over time, happiness tends to stay relatively stable despite economic growth, suggesting that factors like social relationships, health, and community play crucial roles in well-being beyond just financial wealth.