Diener, Ng, Hartnery, & Arora (2010) examined the relation between wealth and happiness around the world. Results of their study indicate that:
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Factors like income and owning luxury possessions have no relation to measures of positive and negative affect.
Positive affect is much higher in wealthy nations compared to poorer nations.
The impact of having one’s basic psychological needs met has a much greater impact on positive and negative affect than indices of wealth.
What is important in determining positive and negative affect is not objective income, but relative income, or how much one has in relation to others in one’s community.