The Easterlin Paradox refers to the observation that, while wealthier societies tend to report higher levels of happiness, individual happiness does not necessarily increase with income beyond a certain point. Developed by economist Richard Easterlin in the 1970s, this paradox suggests that once basic needs are met, factors like social relationships, community, and personal fulfillment play a more significant role in determining an individual’s well-being, leading to the conclusion that increased economic growth may not directly translate to increased happiness for individuals.

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