Experiencing Happiness

Greg Mankiw writes (emphasis mine):

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From yesterday's Wall Street Journal, some advice:

Think carefully about how you spend your dollars. While a new car may not boost your happiness for long, maybe a trip to Europe would.

"Money itself doesn't make you happy," [Harvard psychology professor Daniel] Gilbert says. "What can make you happy is what you do with it. There's a lot of data that suggests experiences are better than durable goods."

The car might seem like the better purchase, because it has lasting value. But, in fact, it sits in the driveway, slowly deteriorating. "Experiences don't hang around long enough to disappoint you," Prof. Gilbert says. "What you have left are wonderful memories."

This rings true to me.

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This rings true to me too. When I reflect back on life, the memories I have bring back much more joy than do the things I've bought. Whether it be time with family, my travels to the 7 continents and 50 states, going to Alaska with my 90-year-old Aunt Ruth, volunteering at Give Kids the World, being involved with church, or sharing a meal with my friends, all of these have brought me far more satisfaction than any material possesion I've ever bought. Rarely have I regretted spending money on these experiences and relationships, but many times I've regretted material purchases I've made. Even the experience of coming here to GMU for my PhD, despite some challenges, has been far more satisfying than the much higher-paying engineering jobs I've had. (So far, anyway...)

When I first graduated college, I intentionally made it my aim to accumulate experiences rather than things. According to the latest in happiness research, it looks like this was a very good idea.

Apparently, my professor Bryan Caplan doesn't fully agree:

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I'm baffled. Don't many durables provide a flow of experiences? A nice T.V. is the obvious example; a fine stereo system's another. My CD collection is my pride and joy - whenever I worry about being robbed over vacation, my first thought is the sorrow of seeing my CD shelves empty.

I don't share Arnold's methodological aversion to happiness research, but this sounds like a very hasty generalization.

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To which Will Wilkinson counters:

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Two points. (1) Market egalitarianism. Qualitiative differences between cheap and expensive consumer goods is almost nil. There is almost no experiential difference between a cheap TV and a “nice” TV. If Deadwood is good on a $2000 plasma screen on HBO, it’s 98% as good on your sister’s giveaway used 19″, a $35 DVD player, and Netflix. The extra expenditure buys almost nothing in terms of the quality of experience. Same with the music. For $4.95 a month, I can get I’m guessing 75% of of Bryan’s CD collection on Yahoo. Capitalism make money worth much less when it comes to manufactured non-positional goods. (2) Adaptation. The mind is a novelty whore — a change detector. Consciousness loses its grip on the added quality of a premium picture, sound system, etc., very fast. The cheap, almost perfect substitute for an expensive stereo is a cheap stereo. The cheap substitute for an exquisite meal at the best restaurant in Paris is… what? IHOP in Arlington? A great memory and a great story is an ongoing flow of positive experience. Gilbert is right.

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Tyler Cowen seems to echo this when asking "What makes the best Christmas gifts?":

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Experiences, not possessions. Concerts and travel are remembered for longer than clothes and jewelry. The result is robust to different ages and groups, but tends to be strongest for high-income individuals. Here is the full story, here is another summary. Here is the original paper. The home page of Van Boven, one of the researchers, offers many interesting papers on human psychology.

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Dr. Cowen shares some more thoughts on happiness here and here.

Be sure to check out Daniel Gilbert's book, "Stubmling on Happiness". It's a book discussing the latest findings in happiness research and is a great read! I listened to the audio version on my trip to the northeast this summer and found it enjoyable, insghtful, and fascinating. Apparently, I'm not the only one who likes it.

Listen to this radio broadcast about the latest in happiness research and check out Gilbert's website.

My Previous Posts on Happiness Research:

• Happiness Around the World
• Unhappy About Happiness Research
• Happiness and Responsibility