A lot of studies have shown that people aren’t made happier by any particular income, but only by having the same or a little higher income than their peers. This is used as evidence that humans care more about status than they do about wealth itself (and that’s why communism will never work blablabla).
I’ve never heard anyone consider the possibility that being poorer than your friends makes it hard to socialise, which has an effect on happiness. If all your friends are poor, you hang around at each others’ houses drinking Aldi beers. If most of them start going to bars, and you can’t afford to, suddenly it’s harder to drink with them, or every time it involves feeling a bit guilty about having to rely on them shouting you.
Your friends start going to $30 restaurants instead of $11 restaurants, and you can’t get dinner with them much anymore. Or go to festivals with them, or concerts, or whatever.
Presumably if your friends are ultra rich and you’re only super rich, they’re all helicoptering to the Bahamas while you can only afford to helicopter to the Adirondacks.
This seems like such a blindingly obvious thing to miss that I wonder if it actually has been addressed and factored in, but also it’s exactly the type of human element that economists *do* tend to miss, so I wouldn’t be surprised.
tl;dr humans aren’t as shitty as economists think we are
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