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AMERICA’S HAPPINESS plunged during the pandemic. I’d assumed that survey result was an aberration, and perhaps that’ll still prove to be the case. But recovery sure hasn’t come quickly.
There was no General Social Survey in 2020, when COVID-19 struck. But the following year’s survey found that just 19% of Americans described themselves as very happy—the lowest reading since the survey was first conducted in 1972. The “very happy” group rose to 25% in 2022, only to fall back to 23% in 2024, according to just-released results.
These were the three lowest readings in the survey’s 52-year history. Indeed, over the past half-century, typically between 30% and 35% of Americans have described themselves as very happy.
Why hasn’t America’s happiness bounced back? The 2024 survey also found that many respondents were dissatisfied with their financial situation and pessimistic that their income would improve. In addition, I’d imagine today’s sharp political divisions are influencing the results.
Want to make sure you’re among the “very happy” group? There is, alas, no way to guarantee that. Still, the happiness research conducted by economists and psychologists can help us better understand why we’re happy or unhappy—and it offers some insights into how we might improve our outlook.
We all have a happiness set point. The bad news: It seems we’re genetically predisposed to be more or less happy—and this innate trait is easily the biggest determinant of our happiness level. Some folks will always be happier than others, no matter what life throws at them.
Heard about the big five personality traits? These innate traits—which are hard to change—are correlated with our life satisfaction. Folks score high for happiness if they also score high for emotional stability, extraversion and conscientiousness.
Midlife misery is common. Happiness through life is U-shaped. When do we hit rock-bottom? Economist David Blanchflower analyzed data from across the developed world and concluded the depth of midlife misery arrives at age 47.2.
That sounds right to me. I was in my mid-40s when my Wall Street Journal column began to feel like a chore, and I started casting around for what I wanted to do next.
Our relative standing matters. Richard Easterlin is arguably the father of happiness research. He identified a fascinating paradox: Those with more money say they’re happier, and yet a society doesn’t become happier as it grows wealthier. Why not? We care less about our absolute standard of living and more about our standing relative to others.
What matters is what we focus on. One strategy for boosting happiness: Ponder the good things in our life. This is a key reason that those with higher incomes tend to say they’re happier. When surveyed, those further up the income scale think about their good fortune, and that prompts them to say they’re happy.
Happiness comes in two flavors. Eudaimonic happiness is walking out of the office on Friday evening knowing we got a lot accomplished over the past week. Hedonic happiness is seeing friends right afterwards for a couple of beers and a burger. Hedonic happiness tends to be fleeting, while the glow of eudaimonic happiness has the potential to last longer.
It’s tough to permanently boost happiness. But there are ways to raise our life satisfaction: Keep our commute short. Spend time with friends and family. Volunteer. Give to charity and family. Work on our health. Regularly count our blessings. Favor experiences over possessions. Devote time to activities we’re passionate about.
All this might seem obvious. But it’s easy to lose sight of such things, and instead find ourselves, say, spending money without much thought and not making an effort to see friends.
Money can ward off unhappiness. Yes, our dollars purchase limited happiness. But at the same time, the absence of money can cause great unhappiness. What’s the best way to buy happiness? My advice: Amass a healthy sum in your financial accounts, and quietly enjoy the peace of mind it offers. Not having to worry about money is, I believe, a great privilege.
Jonathan Clements is the founder and editor of HumbleDollar. Follow him on X @ClementsMoney and on Facebook, and check out his earlier posts.
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“My advice: Amass a healthy sum in your financial accounts, and quietly enjoy the peace of mind it offers. Not having to worry about money is, I believe, a great privilege.”
Absolutely, 100% Correct! A privilege, indeed.
Despite the advice of most financial gurus, I made the decision to spend a considerable sum of my portfolio on a series of annuities, 2 years before I retired. I also made the decision not to file for my social security benefits until age 70. These two decisions have resulted in my wife and I having the peace of mind knowing that 1. We will never run out of money in retirement 2. We currently have guaranteed income that is twice the amount of our current retirement expenses 3. Our remaining portfolio is invested for the long term, 100% in equities, as we are not presently using it for income.
Guaranteed Income for life, no debts, no mortgage payments, fairly decent health…life is good! Thank you Lord!
Reading The Best of Jonathan Clements and towards the end of the book in a column dated 8/16/06 he reports just 30% of Americans in the late 1990s described themselves as very happy down from 34% in the early 1970s(page 2034).
Seems we are just continuing the downward trend.
Happiness requires first that you fundamentally like who you are, warts and all. You can look in the mirror, accept that face looking back at you, and even smile back at it once in a while. It seems to me that nothing else will supersede that. After that I’d say that happiness is enhanced if you are content about the things in life you consider most important – relationships, health, security, financial well-being, or whatever else you hold dearest. It doesn’t even have to involve all of them. Most of us know we don’t need a glass that is full, just one that has “enough”.
I always wondered why some people with so little are happier than those with a lot more material possessions. The answer, as you say is ” What matters is what we focus on”. If you focus on your needs and are able to fulfill them, you are on your way to happiness. If you focus on ‘wants’ and constantly compare with others, you could never get there.
Thanks, Joanthan. Very nice article. In my view to achieve a foundamental level of happniess, we need to have a foundamental level of health and safety (physical and finance). Once that foundation is built, then more happiness can be build on top of it.
Yes, “we all have a happiness set point.” And there is no doubt financial security is essential for peace and well-being. However being happy is a choice and we must be taught how to make that choice. Focus on what is going right, not what is wrong. Remember the Serenity Prayer “accept the things I cannot change, courage to change the things I can, and wisdom to know the difference. Living one day at a time; Enjoying one moment at a time; Accepting hardships as the pathway to peace.”
Thanks. As I’ve been told (and have told others) – You Are Responsible For Your Own Happiness.
Thanks, Jonathan, for an article which really touched me, considering your situation. Your paragraph about how to boost our happiness is very “you”! 😊 Based on a suggestion that I think was recently made here, I’ve begun keeping a gratitude journal. The last few weeks (and months, if I’m being honest) have been stressful, but the gratitude journal reminds me daily now of how much I have to be thankful for. Financial security definitely adds to my happiness because it frees me up to think and do for others, as well as treating myself to some special things 🛫🛬