“Wealth” is a relative thing, part II

“[As] a Western country becomes richer, its people overall do not become happier. The reason for this is that over time our standards and expectations rise to meet our income. A Gallup poll has asked Americans each year: “What is the smallest amount of money a family of four needs to get along in this community?” The sums mentioned rise in line with average incomes. Since people are always comparing their incomes with what others have, or with what they are used to, they only feel better off if they move up relative to the norm.”
–Richard Layard, “Happiness is back”, Prospect, March 2005