The Ultra-Wealthy and the Hedonic Treadmill
Is it ever gonna be enough?
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They say that money doesn’t buy happiness, it just buys more stuff, more material possessions. Some believe that happiness can be achieved by shunning these possessions. If money can’t buy happiness, then why are most of us trying to collect it like it’s going out of style?
When we see the ultra-wealthy amassing billions year after year we tend to think that this financial gain must be the key to happiness, right? From the perspective of a person with an average or below-average income, having a lot of money would definitely make us feel better and more secure.
In this case, I think that it is not the financial gain that is creating the good feelings but instead the alleviation of worry. Not worrying all of the time about how you’re going to pay your bills and true happiness can be worlds apart but, if you have struggled forever and then had extreme financial gain, that alleviation of worry could seem like the greatest thing that has ever happened to you. But is it?
For a while, it may be great or….? But how much stuff can you really purchase and still be excited about it a year or two later? You may appreciate the fact that you still get to use the item that you purchased but after a while that excited feeling that you felt initially goes away.
That feeling is known as the hedonic treadmill or the hedonic adaptation. The hedonic treadmill is the observed tendency of humans to quickly return to a relatively stable level of happiness despite major positive or negative events and life changes.
In other words, as circumstances improve or worsen, people tend to adapt, and their overall happiness remains relatively stable over time.
This, I believe, is the reason for the need for the uber-rich to keep making more money than most of us will ever see in our lives. According to this theory, as a person makes more and more money, their expectations and desires rise at the same time, resulting in no permanent gain in happiness.
This phenomenon holds significant implications when examining the lives of the ultra-wealthy.
On the surface, it might seem that accumulating wealth and indulging in lavish lifestyles should result in sustained happiness. However, the hedonic treadmill suggests that while material gains may provide temporary boosts in happiness, they are often short-lived.
Once a certain comfort level is achieved, the mind adapts, and the initial euphoria wanes. Consequently, the ultra-wealthy find themselves on a perpetual quest to achieve ever-higher levels of wealth and luxury in pursuit of contentment.
In this case, more will never actually be enough. The paradox of excess becomes evident when examining the lifestyles of the ultra-wealthy. Possessing immense fortunes far beyond the needs of a comfortable life, these individuals continue to amass wealth without finding any kind of lasting fulfillment. This pursuit of more becomes a defining characteristic, fueled by societal expectations, personal ambition, and a competitive drive to outdo peers.
The hedonic treadmill is more than likely the reason for the “keeping up with the Jones” mentality, you can read more about that here,
Being Poor in America
Being poor in America is different than being poor in other countries. Here in the United States, oftentimes poor people may have access to certain material possessions such as cars, homes, and other luxury items. However, it is critical to recognize that these possessions can often be a result of different factors and circumstances compared to poverty …
As they climb the affluent ladder, the ultra-wealthy experience diminishing returns on happiness. The thrill of acquiring another car or an extravagant mansion loses its luster very fast. This cycle perpetuates the hedonic treadmill, as the pursuit of happiness is mistakenly directed toward external possessions rather than internal well-being.
There is a culture of consumerism and superficiality that has been perpetuated by the accumulation of material possessions. This rate of consumption sets aspirational standards that trickle throughout the population, therefore, leading to a cycle of consumption, waste, and a state of constant desire that can only be satisfied temporarily.
This has created a culture that is more in love with the all-mighty dollar than anything else. This has implications for individual mental well-being, as the relentless pursuit of material wealth fails to deliver on its promises of lasting happiness.
Maybe it’s time to rethink what we consider wealth and how it relates to our personal well-being.
Breaking free from the hedonic treadmill requires a fundamental shift in mindset, both for the ultra-wealthy and the regular person. For the ultra-wealthy person to be able to do this they need to remember what it was like before they became wealthy, but for the well-off individual that was born with a silver spoon in their mouth, I imagine this can be quite the challenge.
Recognizing that the pursuit of happiness through material acquisition is ultimately futile can help to pave the way for alternative roads to well-being. This could involve redirecting wealth toward philanthropic endeavors that address societal issues or cultivate meaningful connections that extend beyond material realms.
Our culture of consumerism and the hedonic treadmill are intricately linked, highlighting the complexities of wealth and happiness. The ultra-wealthy constantly pursue happiness through material accumulation, despite the diminishing returns it offers. If the trend of constant consumerism is to continue, then we have to ask ourselves the question, is it ever going to be enough?
Thank you! I always think, for me, having enough wealth to not worry about emergency expenses as well as having everything else covered would be enough, but would it?
The hedonistic treadmill is very real, although there's certainly some correlation between happiness and wealth, but it happens at a far lower number than most folks think. In other words, there's a limit to how much wealth you can add to attain greater happiness, and it gets harder the higher up you go. Nice food for thought today, Brian!