Evaluate the Relationship between Happiness, and Income/Economic in Global Perspective

Abstract

In 21^st century, happiness is driven by relative income comparisons, social support, and personal health rather than absolute wealth. Personal happiness does not automatically rise with wealth. As per hedonic treadmill, when people acquire more wealth, their expectations rise in tandem. A higher income quickly becomes the new normal, meaning happiness levels return to a stable baseline rather than increasing permanently. Whereas, as per social comparison, happiness is frequently measured not by absolute wealth, but by relative wealth—comparing oneself to neighbors or peers. However, as per the pursuit trap, the relentless pursuit of wealth can lead to lower happiness due to increased stress, decreased free time, and weakened social connections. On the other hand, life satisfaction is negatively correlated with a higher Gini coefficient, which indicates a wider gap between the wealthy and the poor. Higher values are indicative of greater inequality. In general, societies with higher Gini coefficients, which indicate greater income inequality experience lower levels of overall contentment. Although happiness is positively influenced by wealth (GDP per capita), high inequality frequently undermines this benefit by diminishing trust and perceived equity. Again, although a higher GDP per capita frequently enhances life satisfaction, the contentment of the bottom 50% can be diminished by the substantial wealth concentration at the top. The Nordic countries (Denmark, Finland, Iceland, Norway, and Sweden) have comparatively low Gini coefficients, robust social safety nets, elevated institutional trust, and high happiness indices. Conversely, significant disparity diminishes the general pleasure of a nation; for instance, Bangladesh has considerable income gaps, reflected in a high Gini coefficient of approximately 0.50. Inequality adversely affects happiness, especially when financial disparity is substantial, as it heightens social comparison and diminishes life satisfaction. Although money can provide solace and pleasure, it is not the sole method of achieving enduring happiness. Happiness is a composite of various aspects of our existence with physical and mental status, including, personal development, social connections, sense of purpose, relationships, etc. Again, Easterlin pointed out that economic growth in nations does not guarantee increasing happiness for the average citizen, the underlying reason has remained controversial. This article will evaluate the relationship and paradox between wealth, happiness and economic disparity in regard to the richest and happiest countries in the world with the special emphasis of the Gini coefficient. To justify the analysis, process a simple survey on happiness and income disparity of a heterogeneous group of individual/families (more than 10000 individual and 2000 families) within a long span of time around 7 years both from poor and rich as well as urban and rural areas around a sample LDC/developing country (as Bangladesh) has considered to evaluate the disparity in more practical ways.