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Subjective Well-Being from Rich and Poor

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Rich and Poor

Part of the book series: Social Indicators Research Series ((SINS,volume 15))

Abstract

It is commonly believed that people who are rich are no happier, and perhaps even unhappier, than people who are poor. This review will provide empirical evidence that this is not so. People who are rich are substantially happier than people who are poor. The reason for this can be understood in terms of the Homeostatic Theory of Subjective Wellbeing. This theory proposes a set of psychological devices that cooperate to hold SWB within a narrow, positive range. This range is determined by personality, possibly as the balance between extraversion and neuroticism. The resulting ‘affective balance’ acts to set the operational valence of internal ‘buffers’ comprising self-esteem, optimism, and perceived control. Subjective wellbeing is the output from these buffers and, thus, under normal conditions, reflects the narrow positive range imposed by personality. Experience with the environment impacts on this system but its influence on SWB is attenuated by the buffers provided that the degree of challenge is not to great. Additionally, the probability of experiencing a strong negative influence can be reduced by money. As a flexible resource, wealth can buy personal assistance that allows the avoidance, or at least the amelioration, of negative experience. So money in these terms can be conceptualized as an external buffer. This model predicts significantly different levels of SWB for people who are rich, people on average Western incomes, and people who are poor. Data are provided that support this prediction. It is concluded that money buys happiness to the extent that external resources permit optimal functioning of the SWB homeostatic system.

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Authors and Affiliations

  1. Deakin University Melbourne, Australia

    Robert A. Cummins

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  1. Robert A. Cummins
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  1. Johann Wolfgang Goethe-Universität, Frankfurt am Main, Germany

    Wolfgang Glatzer

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Cummins, R.A. (2002). Subjective Well-Being from Rich and Poor. In: Glatzer, W. (eds) Rich and Poor. Social Indicators Research Series, vol 15. Springer, Dordrecht. https://doi.org/10.1007/978-94-010-0257-8_10

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  • DOI: https://doi.org/10.1007/978-94-010-0257-8_10

  • Publisher Name: Springer, Dordrecht

  • Print ISBN: 978-94-010-3954-3

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