My more recent research on happiness around the world throws another monkey wrench into the equation…While the research confirms the stable patterns in the determinants of happiness worldwide, it also shows that there is a remarkable human capacity to adapt to both prosperity and adversity. Thus, people in Afghanistan are as happy as Latin Americans \u2013 above the world average \u2013 and Kenyans are as satisfied with their healthcare as Americans. Crime makes people unhappy, but it matters less to happiness when there is more of it; the same goes for both corruption and obesity. Freedom and democracy make people happy, but they matter less when these goods are less common. The bottom line is that people can adapt to tremendous adversity and retain their natural cheerfulness, while they can also have virtually everything \u2013 including good health \u2013 and be miserable.<\/p>\n
One thing that people do have a hard time adapting to is uncertainty. For example, my latest research, with Soumya Chattopadhyay and Mario Picon based on daily records of around 1,000 Americans from January 2008, shows that average happiness in the US declined significantly as the Dow fell with the onset of the crisis. Average happiness fell 11% from 6.94 (on an 11 point scale) prior to the onset of the crisis, to a low of 6.19 on November 16, 2008. Yet when the market stopped bottoming out and some semblance of stability was restored in late March 2009, average happiness recovered much faster than the Dow. By June 2009 it was higher than its pre-crisis level: 7.15 on June 21 – even though living standards and reported satisfaction with those standards remained markedly lower than they were prior to the crisis. Once the period of uncertainty ended, people seemed to be able to return to previous happiness levels, while making do with less income or wealth…<\/p>\n<\/blockquote>\n
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