Does Status Trump Wealth?

And that makes sense: money buys you things that make life easier and more satisfying; the easier your life, the happier you tend to be. That relationship isn't entirely linear, since there's a limit to how much wealth can please you; the happiness benefit of an increasing income is especially powerful among people who don't have much money to start with, and diminishes as wealth increases. But studies also reveal that as average income levels have risen over time — in the U.S. and European nations, for example — residents of those countries have not reported being any happier than people were 30 or 40 years ago. It's a paradox that while income and happiness may be associated within a population at any given moment, overall economic growth does not appear to correspond to a boost in national satisfaction over time. [Time]

To understand why, researchers at the University of Warwick and Cardiff University decided to break down how individual people evaluate their income. What does wealth mean to people?

"What we're trying to do is understand and explain why, over 30 to 40 years, the large economic growth we have experienced hasn't made us any happier," says author, Chris Boyce, a psychologist at the University of Warwick. "If absolute income matters, as we increased our income, everybody should get happier at a national level, but we don't seem to. So what we are showing is that in terms of life satisfaction, rank is a better predictor than absolute wealth." [Time]

This is a fascinating article and study, but something of a no-brainer if you ask me. Money can buy status, therefore they are inexorably linked.

Money = Status

The problem associated with attaining "status" is that it leads to a perpetual game of one-upsmanship ... for which you need a limitless supply of cash. People aren't happier on a national level because, no matter what their level of income is, they are constantly competing with the Joneses. Whether it involves buying the latest luxury handbag, a personal submarine, or a villa in an exotic location, it's all a silly game that leads to dissatisfaction. 

Now, we need to study why we needed a study to figure this simple truth out ...