December 26, 2013

Leveling the Happiness


When things in life are hard to achieved, people tend to forget that happiness is free and a state of mind. In university, economics students were thought that utility (happiness) is achieved when budget constraint is equal to the utility curve (sorry for being technical). This means that economics assumes that happiness in real term is influenced by budget, savings, income, and the likes.

To meet the equilibrium and achieved happiness, people could adjust their budget constraint (income) or adjust their utility curve (level of happiness). It is assumed that the higher level of happiness the more budget or income is required. Relatively, this means that when the budget is not equal with the level of happiness, full utilization will not be achieved. For example, a person wants to buy an I-Phone, yet, his money is only five thousand Pesos (100 USD). In this case, there is inequality with what the person wants to buy and the budget he has.

In realistic sense, income will take a long term to adjust while adjusting the level of happiness will only take a second. Once the budget is equal to the level of happiness, then, full utilization will be achieved. The person might not buy an I-Phone yet there is an A-Phone to suite his budget - the features are the same (except the brand and probably the quality).

Being thankful brings happiness to heart.


No comments:

Post a Comment

Subscribe to Philippine Economist via Email