Dow Jones Sinks

In this month’s posting for Positive Psychology News Daily, I reviewed some brand new research from Professor Carol Graham, Soumya Chattopadhyay, and Mario Picon (all from the University of Maryland). Their objective was to better understand the effects of the US economic crisis on well-being and to determine if individuals adapt both to the bad news of the crisis and then to the good news of potential recovery.

Looking across time during the crisis, not surprisingly happiness levels decreased markedly at the start of the crisis, reaching their lowest levels early in 2009. They then followed an equally marked upward trend after April 2009. During the downward trend, happiness levels lag the stock market spikes, which makes intuitive sense.

But the most striking result is that happiness levels lead the stock market on the upward trend. What’s more, by July 2009 happiness levels were above those at the start of the crisis, even though the Dow Jones was only just starting to recover, having hit rock bottom.

For the full posting and to read all the comments, see Positive Psychology News Daily.

Image  courtesy of Scorpions and Centaurs

Ice-cold beer - one of life's small pleasures

Another new study (Quoidbach et al, 2010 – see details below) has been published on the topic of money and well-being, specifically, whether being wealthy enough to access the best things in life affects your ability to savour small pleasures.

The research suggests that wealthier individuals report lower savoring ability, and even being reminded of wealth produces the same negative impact on savoring as actual wealth. In fact, you don’t actually need to enjoy any peak experiences (such as spending time on a tropical beach holiday) for your savoring ability to be impaired – simply knowing that these peak experiences are readily available may increase your tendency to take life’s small pleasures for granted.

For a full review of the research and its implications, see Positive Psychology News Daily.

Reference:

Quoidbach, J., Dunn, E.W., Petrides, K.V. & Mikolajczak, M. (2010). Money giveth, money taketh away: The dual effect if wealth on happiness. Psychological Science 21 (6), 759-763.

Image:

Cold beer courtesy of niel schubert

Here’s a link to a US radio show ‘To the point’, featuring Barbara Ehrenreich, author of  ‘Bright-sided: How the relentless promotion of positive thinking has undermined America‘ and Robert Biswas-Diener, a psychology instructor at Portland State University; they discuss the connections between Positive Psychology, happiness and positive thinking and health and the economy (you need to wind forward to 30 minutes to hear this part of the programme, although I recommend you listen to all of it if you have time).

I’m astonished that Ehrenreich links the current economic crisis to positive thinking; what about the role played by good old fashioned greed? Or lack of effective financial regulation? Or technology, which has enabled high-frequency trading (aka casino banking). Surely these are far more likely culprits. By blaming positive thinking we’re unlikely to take the action necessary to avoid the same thing happening again in the future.

There’s been a lot of negative press in positive psychology circles about Ehrenreich’s criticisms of positive psychology, but what I hadn’t appreciated until now was her suggestion that the provision of a welfare state in Scandinavian countries (and presumably also the UK) might be due to pessimistic thinking. And there was I thinking it was because we cared about our fellow beings.

And whilst I agree with her that the US should think long and hard about being 22nd on the list of happy countries, what she doesn’t then question is how this can be the case if America IS the land of positive thinking that she claims it is.

Thanks to Robert Biswas Diener for the link.

We were talking about this just the other day: so here’s an uplifting tale from the States (where else?) on the positive after-effects of losing your job.

The moral of the story? Write a best-seller about your experience, and sell the film rights!

Thanks to Caroline Rivka for the link

Image: Alex Cheek, reused under Creative Commons License

Here’s my latest article on Positive Psychology News Daily on that age-old subject of wealth and happiness. It seems to have caused a bit of a stir with some readers, judging from the number of comments (32 as of today), although maybe not for the right reasons!

Never mind, I’m sure you’ll find the recent research interesting. Feel free to write your comments on the Positive Psychology News Daily site itself.

Image: thisduck