The article is smarter than the title makes it sound. He's not seriously proposing that being rich makes you happy. And he notes that there's a big drop around 2020 specifically, which long-term trends don't explain.

Just to state the obvious: 2020 was the year of COVID, which played hell with peoples' social lives.

And I think it's been pretty well-proven that happiness is largely driven by the strength and quality of our social relationships. Anything that cuts us off from our friends, or prevents us from forming new friendships, is going to be visible in the happiness data.

Judging by the stats, we haven't dug ourselves out of the post-COVID hole yet.

COVID almost certainly had something to do with it, but the US isn't the only country that faced lockdowns, nor is it the only country that experienced inflation. Why is it that most other countries' happiness scores have returned to near-baseline since then, while the US is still so much lower?

I agree the article is smarter than the title makes it seem. And honestly, much better than comments on HN. The articles keeps diving deeper and asking questions. The comments here take hold of a single theory, without even thinking about the counters that article mentions. This is probably the best example of read the article, and not the comments.

I can say that post-Covid inflation took us from feeling like we were on the edge of escaping the middle class, to feeling like we aren't even close and realistically won't ever be again. Even as our incomes went up quite a bit at the same time.

And we're a lot better off than median. I can't imagine how crushing it's been lower "down the ladder".

These are the secondary and tertiary bad effects of lockdowns which were ignored at the time.

If it was COVID, though, wouldn't we expect to see the same thing in other countries?

I suspect that for many people, the pounding outside is what mainly affects their happiness - if everything reported in the news is sunshine and happiness, they tend happier.

And if it's all doom and gloom and "go outside and you kill grandma" - are we surprised they get sad?

I wonder if COVID revealed to Americans how toxic their individualistic culture is. For a long time it kind of seemed like individualism was working well for you but COVID was the first crisis since WW2 where the country was asked to pull in the same direction together and it really just fell apart.

I'd be miderable too if I learned my entire worldview, and that of my countrymen, was dangerously wrong and there's no way to really fix it.

Covid wasn't some magical line in the sand when things got bad. It's really the tipping point for a trend that began in the 1970s of increasing inequality. Two big things happened in the pandemic that have nothing to do with other issues of social isolation:

1. The fear companies had of raising prices went away thanks to inflation. It's when dynamic pricing in various forms (eg RealPage for rents) really took off. Supermarkets started engaging in essentially unspoken collusion. This tends to get labelled as "price leadership" rather than "price fixing" where the only difference is the first is legal and the second isn't but they're otherwise identical; and

2. Governments around the world engaged in massive wealth transfer to the wealthy, which creates asset price inflation, particularly with housing. Some countries tried to claw some of this back with so-called windfall profits tax. Personally, I think there should've been a corporate tax of 80%+ for 2020-2023 (at least).

The usual tool that governments use to tackle inflation is monetary policy. The theory goes that you raise interest rates, it makes borrowing more expensive and it dampens the heat in the economy. That's true but it's also a very blunt instrument. It hurts everyone from the biggest borrowers to people buying homes.

What never gets serious discussion let alone policy discussion (at least in the US) is fiscal policy, secpfically taxation. Temporarily high corporate taxes would've had a similar effect on tempering M&A, share buybacks, etc but it would've only targeted companies who were profiting from, say, a huge spike in oil prices.

But there are other factors too that existed before Covid such as private equity, which is simply buying up all the competition, making everything more expensive, paying back an LBO and then loading up a company with exploding debt so some sucker down the line can buy it before it blows up.

100% right. What we (rather 80+ year old corrupt politicians) did to young people during covid was downright criminal. Almost two of their most important years destroyed.

Can we stop pretending that it was Covid, and not the felon pedophile and his cronies in charge of the country? You can see on the plot that the shit started in 2016.

>Just to state the obvious: 2020 was the year of COVID, which played hell with peoples' social lives.

No, it was government mandates that played hell with peoples' social lives.