The Easterlin Paradox refers to the observation that, within a given country, higher income levels do correlate with higher self-reported happiness, but over time, as a country's income increases, the overall levels of happiness do not necessarily rise. This paradox was first articulated by economist Richard Easterlin in the 1970s. It suggests that while individuals with greater income tend to report greater happiness, the societal increase in income does not lead to a corresponding increase in average happiness levels.
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In summary, the Easterlin Paradox highlights the complex relationship between income and happiness, challenging the assumption that wealth directly translates to well-being.
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