Microeconomics

Do you agree with the statement "money buys happiness " Why or Why not

I do not agree with the aforementioned statement . This can be rationalized from many angles . To begin with , it can not be said that money is not at all important . It is quite essential in today 's world of rampant consumerism with so many needs and wants arising as well as being created via marketing techniques . The absence of adequate amount of money means that these wants and needs can not be satisfied which can obviously be a source of

unhappiness (Easterlin , 2004 . So , money is an essential need for happiness to be attained . However it can only be seen to do so much for an individual 's well being . Once the basic necessities re satisfied , money does not do much in terms of advancing one 's happiness . As figures show , the rise in income level has been substantial since the early decades of the twentieth century , close to 116 in real terms by one estimate (Easterlin , 2004 . However , this has not heralded a similar increase in the level of happiness in the population . A person today can not reliably be said to be happier compared to one living in the 1930s . Another fact that supports the argument is that over a lifetime , people experience increase in their income via promotions and increments which should also herald a proportional increase in their level of happiness . This is not the case however as since the basic necessities are...