Can Money Buy Happiness?
ECO201- Module 1 (Case)
Can money buy happiness?
In a literal way money cannot buy happiness because happiness is a feeling, a state of being. Money cannot create permanent state of happiness but definitely it can create temporary excitement.
For any country, money represents an important part of the economy. It helps people to increase their level of living and also it helps to the country to bring more development. If a country wants to increase its economy, it is necessary to invest in development and money is an important key for it. If the country does not have enough funds to cover the improvement, then the economy of that nation is jeopardized as well the economy of their citizens.
Money also represents the purchasing power of any individual in any country. If the income of a person increases, the purchasing power also increases and consequently the demand for goods and services also is incremented. Moreover, with the increase of the income, the marginal utility starts to increase and eventually it will fall because the use of each unit of money spent on the purchase of goods and services. It is always positive for people to pursue money but in a cautiously way and controlling their purchasing power so their financials won’t be affected later.
There are other factors that contribute to a decent standard of living. For instance, there is a lot of work in society such as the fight against crime and also social breakdown as divorce that involve a large economic costs. The GDP adds these expenses to the well-being while GPI (Genuine Progress Indicator) subtracts all the costs involved. Also, GPI measures the cost of hiring someone to do some community settings such as daycares, volunteer work, etc. because in GDP no money changes hands. Then, GPI is a more accurate measure of progress.
The Human Development Index (HDI) measures life expectancy at birth, education and adult literacy, and purchasing power parity in US
Can money buy happiness?
In a literal way money cannot buy happiness because happiness is a feeling, a state of being. Money cannot create permanent state of happiness but definitely it can create temporary excitement.
For any country, money represents an important part of the economy. It helps people to increase their level of living and also it helps to the country to bring more development. If a country wants to increase its economy, it is necessary to invest in development and money is an important key for it. If the country does not have enough funds to cover the improvement, then the economy of that nation is jeopardized as well the economy of their citizens.
Money also represents the purchasing power of any individual in any country. If the income of a person increases, the purchasing power also increases and consequently the demand for goods and services also is incremented. Moreover, with the increase of the income, the marginal utility starts to increase and eventually it will fall because the use of each unit of money spent on the purchase of goods and services. It is always positive for people to pursue money but in a cautiously way and controlling their purchasing power so their financials won’t be affected later.
There are other factors that contribute to a decent standard of living. For instance, there is a lot of work in society such as the fight against crime and also social breakdown as divorce that involve a large economic costs. The GDP adds these expenses to the well-being while GPI (Genuine Progress Indicator) subtracts all the costs involved. Also, GPI measures the cost of hiring someone to do some community settings such as daycares, volunteer work, etc. because in GDP no money changes hands. Then, GPI is a more accurate measure of progress.
The Human Development Index (HDI) measures life expectancy at birth, education and adult literacy, and purchasing power parity in US
References: http://www.bos.frb.org/education/ledger/ledger03/winter/measure.htm http://www.articlesbase.com/print/2001738 http://estore.bized.co.uk/freecontent/30005C1E.pdf