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Explanations of the effects of money on happiness

Veenhoven (1995) among others put forward the view that money enhances happiness when it can contribute to the satisfaction of basic and universal needs for food, shelter and clothes. This is consistent with the finding that within societies there is a relation between income and satisfaction at the lower end of the scale only (apart from a possible small rise for the very rich), and that the relation is stronger in poorer countries, indeed is very weak in rich ones.