Sunday, 9 December 2012

Money doesn’t buy happiness. Or does it?


This phrase is probably well-known to all of you and when you think about it, is seems just about right. But what if you consider this in the context of giving money to others to make yourself feel good? It will soon be Christmas and this subject seems quite relevant especially at this time of year. 

The argument is that money can buy you happiness. The question is what you spend it on. The experiment that Michael Norton talks about in the TED talk for example, has proven that spending money on other people makes you happier in the long run than spending it on yourself. The amount does not matter – it’s the gesture that counts. It has also been observed that people who give money to charity are happier with their lives in general than those who do not. Have you ever thought about the correlation between these two things?

Here's the video:


Of course, giving and helping others, especially those in need is good – but is it fully altruistic? Sandro Contenta suggests that we are evolutionarily tuned to doing things that benefit others because it makes us feel good about ourselves and opens the possibility that people might return the favour in the future. Also, it helps us live up to the positive view of ourselves – in our eyes, and in the eyes of others:

http://www.thestar.com/living/christmas/article/742534--selfish-giving-charity-s-dark-side

So is charity selfish? From personal experience, I recently had an initiative at my company to participate in the “Szlachetna paczka” project. We gathered items of need for a chosen family and packed them in carton boxes for them to be delivered to a warehouse of the institution that organizes the campaign and then be delivered to the family by their own volunteers. “What a pity” I thought, “that we can’t see the reaction of the family when they get the package”. Now that I think about it, I caught myself thinking the same thing that Tim Harford’s talks about in his article:

http://www.slate.com/articles/arts/the_undercover_economist/2006/10/charity_is_selfish.single.html

– that it’s more important that the family gets the items it needs than that I make myself feel good by delivering it personally. 

It’s interesting to consider the thought that: “If people really were altruistic, there would be much less volunteering”. If people who volunteer would spend that time on doing overtime instead for example, to earn more and give that money to organizations specializing in charity, they would have a bigger impact than they have volunteering themselves. But volunteering yourself makes you feel good. It’s interesting that in fact, “the closer you look at charitable giving, the less charitable it appears to be”.

Discuss the ideas presented in the articles and the TED talk. Write about your own experiences.

20 comments:

  1. This comment has been removed by the author.

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  2. I doubt there is a single measure of happiness. You can be happy about one thing and sad about another thing at the same time. Asking "how happy are you right now" or "with your life" isn't going to give you accurate results.

    As for charity, there are different reasons to be charitable, but it's the act of giving that counts. Sure, sometimes it's about tax avoidance more than anything else, or making yourself look better in the eyes of others. Some charities do a better job than others which is also a consideration. In the end, as long as there's a real benefit from it, I wouldn't question the motives too much.

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    1. I totally agree with your last statement. There are lots of individual people, animals and entire institutions that would benefit from financial support. At the same time there is still a large group of people, who think that if they can't give a lot of money, than they have no influence on the "big picture", so why bother anyway. I strongly believe, that they should not be additionally discouraged by thinking, that perhaps they behaviour is not entirely altruistic...

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  3. One time my friend said "I'm too old to work for free", which was mind stopping for me at first, since I view charity and volunteering as something extremely noble. Another person claimed "I don't give to everyone, I choose one charity and support them every year". I don't know where I would place myself in this picture.

    Helping others definitely helps people develop themselves. Giving people money may be important, but giving others TIME is much more costly and needed. The elderly need to feel included, the children need to feel safe. Money can't buy those minutes needed to drink a cup of tea together and just talk, or even just "be". Loneliness is probably the worst think that can happen to humans and yet it may be the hardest to eliminate.

    Time is running out fast for everyone and we need to decide what will be left. Hopefully it will be some happy memories, some good and bad moments with our families, and not the will or bank statements.

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    1. I recently heard on the radio that most people (if they decide to help at all) prefer to give money to charity instead of spending their time on volunteer work. But as you've said for some, a minute of attention means more than anything else... However it's a fact that some people don't have a lot of money and they have time that they can spend. Taking this into consideration do you think that (as a general rule) spending your personal time helping others has a greater impact that giving money?

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  4. It’s possible that for many people, giving money to charity is a form of cutting corners instead devoting their time to volunteer. This can be a kind of justification in front of the society: "I have a great company, I do not care about the welfare of employees and their family. Profit matters to me most but once a year I donate $ 1 million to charity in front of cameras and everything will be good"

    I do not want to say that giving money to charity is wrong or useless, but giving them to feel better and showoff in front of others can be puzzling.

    Personally, I support every year two organizations: the WOŚP and “Fundacja spełnionych marzeń” . The results of the work of both foundations I’ve seen and I know how much they are needed and give hope and opportunity to children who are in a difficult time.

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    1. So what do you think about the CSR actions taken by the big global companies/corporations? Do you consider them to be just another marketing tricks, designed to earn profits in a long run?

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  5. It's hard to say. Money really can’t buy happines but is it possible to live without money? As Wiktor doubts it, can you measure the level of happiness? As Woody Allen said, "Money is better than poverty. From a purely financial reasons,"I'm not materialistic, I always thought that we would not take money to the grave, but spreading an idea that money doesn’t bring happiness is too general.What is the minimum money we need in our wallet to determine if we are happy or not? Is the fact that I have in my account 200 thousand Zł supposed to prove that I am unhappy but having 200 zł makes me happy ? Nothing divides people more than money. Nowadays there is a belief that rich people must spend the money on charities, have to pay higher taxes, etc.., Why? Why punish only the rich because they are rich. In Poland we still have a working Janosik-law, and is it fair?

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    1. You've asked a simple question, yet an answer may lead to a serious discussion. Interestingly this helps to look at this topic from a different angle --> the more money you have, the more unhappy you are. Do you agree?

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    2. To a certain degree yes, I agree.

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  6. It’s very difficult topic – especially in context of Christmas.
    I partially agree with Krzysiek that giving time is important. But I think that we can help in the best way if we connect giving money with giving time. I support organization which prepares gifts for poor people. This organization groups many splendid peoples who prepare gifts, dinners and so on – I can’t imagine their work without other people’s money.
    Very interesting thought about giving money in front of cameras was showed by Michał. I don’t give money in this way, but next time before giving money I will thought if I can’t help in better way.
    Sometimes I think that giving money for some charities makes organizations responsible for some areas more lazier: for instance hospital’s owners don’t think about buying new equipment because … they will get them from WOŚP.

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    1. There are some charity organizations that do not seek recognition for what they do and they don't do it in front of cameras. These spend their money and time helping the ones in need and do not focus on anything else.
      On the other hand there are those that spend their resources (money, time) on broadcasting their actions as far as they can (let's take WOŚP which you mentioned as an example), so that they would reach as many people as they can. Which of those two strategies you think is better?

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    2. Maybe both strategies are good. WOŚP spends more money on advertising but later receives more money during its final. Other organizations don’t prefer showing their achievements in front of cameras. So mathematically WOŚP can spend more money for medical equipment but also loses more money for advertising, fun and so on.
      Probably I used too big thinking shortcut in presenting my opinion about giving money in front of cameras. I didn’t think exactly about giving in front of cameras but I thought about giving at the end of some process when we were able to do something good for others earlier in this process.

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  7. I think the speaker hit the nail in some issues he has spoken of. Of course as with everything there are no ultimate truths and spending money on others will not make you happy every time. In my opinion especially donating big organisations isn't best idea because we actually don't know where these money are going and whether it is spent as we wished when donating. But coming back to the lecture I think that especially important part was about giving in a team and how does it affect cooperation and general effectiveness of work with which i completely agree.

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  8. Feeling better yourself by helping others (either with money or something else) ONLY works if you see the result of your gift. If you give money to a charity without seeing the result of your donation, you will not feel happier.
    This is a basic instinct, tribes of animals that work together survive while ones that don't tend to die out, caring is innate.
    When he says "it doesn't matter how you spend the money", yes it does, it only works if you see the effect.
    What if you get people to spend their hard earned cash on someone else? Would they feel so satisfied? ... especially as some people are ungrateful pricks.
    For some people you could spend all the money in the world, and they'd love you the whole time, until the very second you run out of money, then they move on forget about you.
    Never spend money on other people.
    One thing I'd be very cautious of here, is that pleasure and happiness are vastly different psychological mechanisms. I define happiness as the natural result of being present in each moment with love and kindness toward yourself and others. I think here, happiness has been achieved because they've improved their relationships and/or enriched the lives of others - and seen the results. Connection, non-wanting, and acceptance are key. Buying consumer goods for yourself, doesn't make you happy.

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    1. You've made some hard statements there! You mentioned that some people would be friends with the ones that have money until the point the money would end. However the process of spending the money on others is considered by many as a very pleasant thing ; so one side feels important and receives applause and the other receives material aid.
      Don't you agree that this is somehow a symbiotic state?

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    2. I agree with your definition of happiness.
      Regarding the thesis that you need to see the results to become happier - I see things differently as I've stated in my post:
      1) make an informed choice;
      2) perform the aid;
      3) forget;
      4) return to point 1 of you can :)

      Regards,
      WK

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  9. I think that giving anything to charity should not be driven by the idea “how can I make myself happier”. Even more, that way of thinking is wrong.
    If you meet someone that you can help with some money and you can do so then do so. And the next minute after you granted aid the best thing you can do is forget about what you have just done. That way the person receiving the help is not forced to show you gratitude what can be embarrassing for one.
    On the other side you should spend some time thinking in what direction you want to give away your money. You cannot have unlimited amount so your decision should be well thought out. And it’s not only that you have a limited resources it is also about that not always giving money is the best way to help.

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  10. It's very difficult topic.
    Money doesn’t buy happiness, but may give happiness both: you and others:)
    Of course helping others, especially those in need is very good,
    but we should be very gentle to not to hurt nobody our "altruism".
    Sometimes people who we want to help do not want, or are
    embarrassed by our help. Fortunately, more often they enjoy :)
    Personally, giving small gifts for my family and friends makes me happy :)

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  11. Like it was said before it depends of the definition of happiness I agree that buying someone gift can make happy ore help other people but if you do that everyday it isn't so fun.
    And another think if you for example are ill then even if you have money you won't buy you happy.

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