Gain profound insights into the Money-Happiness relationship and its impact on SDGs

In our project, we embarked on a quest to understand the intricate relationship between money and happiness. This financial-related question was selected for a multitude of reasons. We were inspired by the notion of open-ended questions, which allow for comprehensive exploration, making them ideal for in-depth reports. Additionally, in our pursuit of objectivity and data-driven analysis, we recognized the importance of exploring a "relationship" to minimize personal biases. Moreover, we wanted our research to have real-world relevance, focusing on beliefs based on statistics that could impact our future lives.

Addressing Sustainable Development Goals (SDGs):

Our investigation into the relationship between money and happiness directly aligns with several Sustainable Development Goals (SDGs). Firstly, it resonates with SDG 1, which aims to end poverty in all its forms. By understanding the connection between income and happiness, we can contribute to the global efforts of reducing poverty and ensuring well-being for all.

Furthermore, our exploration touches upon SDG 8, which promotes economic growth and decent work for all. By uncovering the link between economic factors and happiness, we can provide insights that can guide policies to create better job opportunities and enhance economic prosperity. This, in turn, fosters greater life satisfaction and well-being.

Lastly, our research relates to SDG 10, which calls for reduced inequalities within and among countries. By investigating how income affects happiness, we contribute to the understanding of social disparities and can advocate for a more equitable distribution of wealth and resources.

Our Investigations:

To delve into the complex relationship between money and happiness, we examined various sources of information:

Kahneman's Paper: We delved into "The Relationship between Income and Happiness," written by Nobel laureate Daniel Kahneman, to gain insights into the nature of happiness and the factors influencing it. This paper served as a valuable foundation for our analysis.

Cabinet Office Data (Japan): Recognizing the need for regional context, we utilized data from the Cabinet Office in Japan (2014) to better understand the characteristics of Japanese society. This allowed us to make meaningful comparisons between Japan and the United States.

Economic Information Summaries: We referenced reputable websites with economic information curated by university professors to ensure credibility in our analysis.

Analysis:

Our analysis began by distinguishing between two facets of happiness: emotional happiness and life self-evaluation. The former pertains to daily emotional experiences, while the latter measures the alignment of one's current life with their ideal lifestyle, providing a more stable perspective.

Concerning money, we focused on annual income and per capita GDP. The examination of annual income involved analyzing data from the United States, as presented in Kahneman's paper. Notably, we discovered that emotional happiness plateaus at approximately $80,000, while life self-evaluation continues to improve with increased income. This underscores the importance of income thresholds in influencing different aspects of happiness. We speculated that individuals with higher incomes are more likely to engage in fulfilling work, contributing to higher life self-evaluations.

Comparing this with Japanese data, we found that the income thresholds for happiness changes were distinct, and influenced by household composition. Single-income households in Japan experienced these changes at lower income levels, while dual-income households did so at higher levels. This variation reflected the unique dynamics of Japanese society.

Government and the Flow of Money: We explored how government policies can influence the well-being of citizens through monetary means. Mild inflation, maintained through policies like quantitative easing (QE), can lead to improved living standards. Such policies are crucial for stimulating the economy and making citizens happier.

Our research illuminated the nuanced relationship between money and happiness, highlighting the income thresholds that impact emotional and evaluative aspects of well-being. Our findings have implications for addressing key Sustainable Development Goals, including poverty eradication, economic growth, and reduced inequalities. By understanding these dynamics, we can advocate for policies that promote greater happiness, well-being, and social equity.