The happiness-income paradox refers to the observation that, over the long term, increases in a country's income do not lead to increases in happiness. This study extends previous findings, showing that this pattern holds for both developed and developing countries, including Eastern European countries transitioning from socialism to capitalism. The research also finds that in the short term, happiness and income are positively correlated, with happiness declining during economic contractions and rising during expansions. The study uses data from the Latinobarometer and the World Values Survey, analyzing time series data from 17 Latin American countries, 17 developed countries, 11 Eastern European countries, and 9 developing countries. The results show no significant long-term relationship between economic growth and happiness, contradicting recent claims that such a relationship exists. The study also highlights that recent critiques of the paradox, which suggest a positive relationship between happiness and income, are often based on statistical artifacts or confusion between short-term and long-term relationships. The study finds that while cross-sectional data may show a positive relationship between income and happiness, time series data reveal no such relationship over the long term. This is because happiness and income tend to move together in the short term, but over longer periods, the relationship disappears. The study also notes that the paradox is not resolved by the fact that some countries experience rapid economic growth and increased happiness, as this does not hold consistently across all countries. The study concludes that economic growth does not necessarily lead to greater happiness, and that factors such as social comparison and hedonic adaptation play a significant role in shaping subjective well-being. The findings suggest that policies should focus on addressing urgent personal concerns, such as health and family life, rather than simply increasing material goods. The study also highlights the importance of considering the long-term effects of economic growth on happiness, as recent studies may misinterpret short-term correlations as long-term trends.The happiness-income paradox refers to the observation that, over the long term, increases in a country's income do not lead to increases in happiness. This study extends previous findings, showing that this pattern holds for both developed and developing countries, including Eastern European countries transitioning from socialism to capitalism. The research also finds that in the short term, happiness and income are positively correlated, with happiness declining during economic contractions and rising during expansions. The study uses data from the Latinobarometer and the World Values Survey, analyzing time series data from 17 Latin American countries, 17 developed countries, 11 Eastern European countries, and 9 developing countries. The results show no significant long-term relationship between economic growth and happiness, contradicting recent claims that such a relationship exists. The study also highlights that recent critiques of the paradox, which suggest a positive relationship between happiness and income, are often based on statistical artifacts or confusion between short-term and long-term relationships. The study finds that while cross-sectional data may show a positive relationship between income and happiness, time series data reveal no such relationship over the long term. This is because happiness and income tend to move together in the short term, but over longer periods, the relationship disappears. The study also notes that the paradox is not resolved by the fact that some countries experience rapid economic growth and increased happiness, as this does not hold consistently across all countries. The study concludes that economic growth does not necessarily lead to greater happiness, and that factors such as social comparison and hedonic adaptation play a significant role in shaping subjective well-being. The findings suggest that policies should focus on addressing urgent personal concerns, such as health and family life, rather than simply increasing material goods. The study also highlights the importance of considering the long-term effects of economic growth on happiness, as recent studies may misinterpret short-term correlations as long-term trends.