"Standard of living has increased dramatically and happiness has increased not at all, and in some cases has diminished slightly," said the leading American psychologist Professor Daniel Kahneman of the University of Princeton. "There is a lot of evidence that being richer... isn't making us happier"
Scientists think they know the reason why we do not feel happier despite all the extra money and material things we can buy. First, it is thought we adapt to pleasure. We go for things which give us short bursts of pleasure whether it is a chocolate bar or buying a new car. But it quickly wears off. We compare our lot against others. Richer people do get happier when they compare themselves against poorer people, but poorer people are less happy if they compare up. The good news is that we can choose how much and who we compare ourselves with and about what, and researchers suggest we adapt less quickly to more meaningful things such as friendship and life goals.
According to psychologist Professor Ed Diener there is no one key to happiness but a set of ingredients that are vital. First, family and friends are crucial - the wider and deeper the relationships with those around you the better. It is even suggested that friendship can ward off germs. Our brains control many of the mechanisms in our bodies which are responsible for disease. Just as stress can trigger ill health, it is thought that friendship and happiness can have a protective effect. According to happiness research, friendship has a much bigger effect on average on happiness than a typical person's income itself.
One economist, Professor Oswald at Warwick University, has a formula to work out how much extra cash we would need to make up for not having friends. The answer is £50,000 (nearly $94,000 U.S. dollars). Marriage also seems to be very important. According to research the effect of marriage adds an average seven years to the life of a man and something like four for a woman. The second vital ingredient is having meaning in life, a belief in something bigger than yourself - from religion, spirituality or a philosophy of life. The third element is having goals embedded in your long term values that you're working for, but also that you find enjoyable. Psychologists argue that we need to find fulfillment through having goals that are interesting to work on and which use our strengths and abilities.
Source: BBC News, The science of happiness, By Mike Rudin, Series producer, The Happiness Formula


