In the past, I was asked this question and I had a stock response. I do not know, but I would rather be a wealthy unhappy person as opposed to a poor unhappy person. Now that I no longer have any material wealth, I am really hoping that happiness is not tied to my net worth. I recently read an article in "The Economist" that studied whether or not wealth induced happiness.
The article discussed a study that occurred in a village in Africa where certain residents of the village received a substantial windfall. The study showed that recipients of the windfall reported greater personal satisfaction with their lives and that their rate of depression declined. The study also showed that their neighbors who did not receive the monetary windfall had a significant decline in their overall satisfaction and happiness. (Envy?)
However, the joy and the bitterness that both groups experienced based upon the windfalls was fleeting. After one year, the windfall recipients and the non-recipients stated that their happiness levels had returned their initial levels. Hence, it appears that wealth does inspire happiness but it's effect wears off rather quickly. The explanation for this short term phenomena is that people tend to compare themselves with others. When we do, we almost exclusively look at those who are better off than we are. ( I am guilty of this conduct ).
In conclusion, when the lot of others improves, we become dissatisfied, but when our own lot improves, we quickly shift our reference group to those who still have more than us. In other words, We are never satisfied because we quickly adjust to our new found wealth and status. Although it is difficult to admit, I think I just discovered how I spent most of my life, never satisfied. This is something that has to change.
Ken Flaska
Very true sir