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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 🛫🛬
Very fortunate to be one of the happy people, and it does seem to be more difficult the last few years as the world changes at hyper speed. It is difficult so thanks for all the reminders, and Jonathan thanks for all the GREAT articles, just keep them coming. Very much appreciated.
I’m happiest when I’m doing something for others. I don’t do it as much as I should, or could, but I am increasing this ‘other-directed’ behavior in retirement.
I enjoyed reading this article and the many comments. I occasionally read an article on the topic, and I wonder what I would say if a survey worker interviewed me. I guess I consider my default mood to be contentment, because I have enough. And I have frequent moments of joy or happiness in response to all sorts of things, little things: like watching the neighbor’s little kids cavorting, time spent with our grandchildren, attending concerts, or just conversations or shared meals with friends and family.
I do think many Americans are not content, and do not think they have enough, and will be unable to acquire enough, to meet their future financial liabilities. Many similar folks who live in Finland, for example, likely worry less worry about meeting their needs in retirement, thus have a lower threshold to feel contentment.
Thanks for the great article Jonathan. I’ve really benefited from your thoughts on happiness because they provide practical insight into something so fleeting and ephemeral. My father, a WWII vet who passed away at age 95, in 2014, without ever signing in to a computer or sending an email but did have a flip phone, checked off all the boxes below in retirement. He was a very contented man. Thus, I can vouch for Jonathan’s list because I’ve seen it in action.
Spend time with friends and family. Check.
Volunteer. Check.
Give to charity and family. (He often tried to buy things for me that I didn’t really need)
Work on our health. Check (he love the medical care from the VA)
Regularly count our blessings. Check
Favor experiences over possessions. (He traveled a great deal up until he was 91 and had a stroke).
Devote time to activities we’re passionate about. (Church and golf)
Stay cool!
Interesting that you are writing about happiness, Jonathan. It has been a hard week here. Chris
Some of the happiest people I know are of modest means, and in their working lives were probably living from paycheck to paycheck. What is their secret? I do not know.
We have a special needs granddaughter. She goes to a 4 week day camp every summer. One year, I took her to the church. We were a little early so we got to see most of the campers and their loved ones come in after us. What struck me was how cheerful their loved ones were. They all had big smiles on their faces and were very cheerful with everyone. Contrast that with my workplace or most workplaces when people arrive to work. You will be challenged to find one with so many smiling faces.
An important recent study on happiness was conducted by Killingsworth and Kahneman to resolve the contradictory findings of their earlier research.
Income and emotional well-being: A conflict resolvedMeasures of well-being have often been found to rise with log (income). Kahneman and Deaton [Proc. Natl. Acad. Sci. U.S.A. 107, 16489–93 (2010)] reported an exception; a measure of emotional well-being (happiness) increased but then flattened somewhere between $60,000 and $90,000. In contrast, Killingsworth [Proc. Natl. Acad. Sci. U.S.A. 118, e2016976118 (2021)] observed a linear relation between happiness and log(income) in an experience-sampling study. We discovered in a joint reanalysis of the experience sampling data that the flattening pattern exists but is restricted to the least happy 20% of the population, and that complementary nonlinearities contribute to the overall linear-log relationship between happiness and income.
https://www.pnas.org/doi/10.1073/pnas.2208661120
This is a very interesting article. The idea of having researchers who have contradicting hypotheses, data, or conclusions work together to solve a problem is especially fascinating.
But regarding the metric of income, I’ve always been far less concerned with income than with assets.
“Regularly count our blessings.”
“Not having to worry about money is, I believe, a great privilege.”
Jonathan, thanks for a thought provoking article. These two items above are what stands out for me.
I feel like being grateful for what we have, particularly when so many in the world struggle so much, brings a great deal of calm to ones mind.
The current economic system in the U.S. doesn’t allow for happiness for the average American because it’s merely subsistence living. One example: Can the average American not worry about healthcare? No because being able to afford healthcare depends on a number of factors all beyond the person’s control. How can you be happy if your healthcare can be taken away from you at any moment or at any time?
This is one of the big issues regarding my thinking about retirement. How can I do this before being Medicare eligible?
it certainly is. My father was a professor of English and never stopped having money worries. I’m a software engineer with several degrees, married to another, and we have had money worries all our life together. Currently we are enjoying a brief period of ‘enough’ as we are both working professionally. Next year I hope to retire and expect to be spending a lot of time with the spreadsheets, may have to take another job.
The Easterlin thesis has been refuted by subsequent data and research, see
https://docs.iza.org/dp7105.pdf
Basically, more money means more happiness, in every country for which data exists.
It is of course slightly more complicated than that, see
https://phys.org/news/2023-03-money-greater-happiness.html
But the general pattern holds.
The USA is paradoxical – less happy despite its GDP being higher. This is because of income inequality and the minimal safety nets of this society. When Bill Gates walks into a bar, suddenly everyone there has an average income in the millions.. but that doesn’t pay for my beer. Most OECD countries have healthcare and pensions provided by government, which lifts two of the major oppressions of money cares for their citizens. See David Lancaster’s data.
Speaking only for myself, in my 60s I am unhappier than ever in my previous life. This is from a combination of money worries, concern for US democracy and civil society, existential dread for the entire planet as we continue to blithely skate over the thin ice left to us by warming, and health concerns for my child.
I think happiness is a unicorn – chasing after it will always fail, but if you wait quietly patiently and don’t think about it, it may yet come and lay its head in your lap. Keeping busy and staying interested will at least keep the black dog at bay, which is much more than half the battle. Dr. Seligman of the Authentic Happiness site in one of his books, quotes Wittgenstein on his deathbed, “tell them I’ve had a wonderful life.” Wittgenstein was famously morose and miserable, entertained suicidal thoughts to breakfast, tea, lunch and dinner on most days of the week: but also worked continuously on what interested him.
Thanks for commenting. The paper you cite doesn’t, I believe, refute Easterlin’s key contention — that those with more money say they’re happier, and yet a society doesn’t become happier as it grows wealthier. Indeed, what’s remarkable is how unhappy Americans seem to be compared to the past half-century, despite long-run improvements in the U.S. standard of living.
I have received a very high net negative rating on reporting this in the past, but since I am a glutton for punishment I’ll post it again.
The World Population Review reports on an annual basis the world’s happiest places. The 2025 report:
https://worldpopulationreview.com/country-rankings/happiest-countries-in-the-world
Every year the Nordic countries of Norway, Sweden, Denmark, Finland and Iceland all rank in the top ten while the US is ranked significantly lower (this year 23rd). They hold the top four positions, and Norway is the lowest all the way down in 7th place.
Is this because they have the lowest personal tax rate? No, as of 2023 we had the 41st highest personal income tax:
https://worldpopulationreview.com/country-rankings/highest-taxed-countries
It’s interesting to note that Finland leads the field in both the happiest country, and the highest personal tax rate at 57.3%. Their sales, at 24%, and corporate 20% taxes are also very high.
It’s weird that this posted as a comment here, as this post is incomplete. I wrote a separate post that is complete. The website was acting up as I was writing. As I write in my separate post I didn’t want that post to take away from Jonathan’s. It is meant as a different perspective as to why people in this country are, and continue to be unhappy, ie how Nordic countries compare to the US, and some possible reasons why. Please see my separate, complete post with the full rationale.
Jonathan, thanks for this article. I’ve enjoyed your previous writing on happiness, and appreciate the research you have introduced to us. I was thinking about how our health correlates with happiness. I know when I follow healthy habits, exercise, eating well, I seem to feel happier and more energetic. I wonder if that is a component of Eudaimonic happiness.
So true Rick. Many of our thoughts and plans of happiness are predicated on the assumption of good health. It’s fundamental. Still, those with poor health are forced to dig deeper.
I try and remember that happiness is the byproduct and not the goal. Swedenborg , the theologian and scientist from the 18 th century wrote, “…happiness is from use, of use and according to use.” I think that sums it up: our use to ourselves, our fellow man, and to greater society brings satisfaction and joy. And it’s what makes the world go around. I’ve appreciated how Jonathan has a focus on work and usefulness throughout his writing career. It feels right.
Nice.
I happened to mention the hedonic treadmill yesterday in passing.
As I’ve started approaching the retirement game I’ve really started thinking about my anchors of happiness and as a sporadically extroverted introvert what my strategy is for developing new friendships in possibly new locations. I don’t mean in a transactional forced “networking” sense but a real organic way.
I don’t think money is the root of happiness. I believe it’s accepting the idea of “enough” as in the parable of the Mexican fisherman and the Joseph Heller anecdote.
Funny, I thought about posting that yesterday.
Thanks for the reference to the parable of the Mexican fisherman. I was not familiar with that.
Neither was I. Glad Bobbins posted that. It’s a simple, yet powerful insight on life.
I heartily agree with your last point. I think the happiness of money unspent may be the best bargain around.