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neilc, I personally agree with your intuition, but Daniel Kahneman's point seems to be that, on average, you would be as happy making $60k as you would be making $1 million a year.

This concurs with a lot of other research that suggests that human beings are terrible at estimating what makes them happy. I enjoyed this book on that exact topic: http://www.amazon.com/Stumbling-Happiness-Daniel-Gilbert/dp/...




Sure; my point is that people are perhaps misspending their income anyway. That is, the guy making $1 million per year could just as easily decide to earn $200,000/year and have a lot more freedom.

(In any case, $60k/year is meaningless without some reference to cost of living. $60k/year is an ample relative salary in the Dakotas, but much less so in San Francisco.)




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