The article "Would You Be Happier If You Were Richer? A Focusing Illusion" by Daniel Kahneman, Alan B. Krueger, David Schkade, Norbert Schwarz, and Arthur A. Stone explores the relationship between income and subjective well-being. Despite the common belief that wealth increases happiness, survey data show that reported life satisfaction and happiness have not significantly changed over the last four decades despite substantial income growth. The authors attribute this to the focusing illusion, where people overestimate the impact of specific factors, such as income, on their well-being. They find that increases in income have a transient effect on reported life satisfaction and that the correlation between income and subjective well-being is weaker when measured in real-time experiences rather than global judgments. The article also discusses how the focusing illusion can lead to misallocation of time and resources, such as accepting long commutes or sacrificing socializing time. The authors conclude that the focusing illusion may explain why many people seek higher incomes, even though the long-term effects on happiness are relatively small.The article "Would You Be Happier If You Were Richer? A Focusing Illusion" by Daniel Kahneman, Alan B. Krueger, David Schkade, Norbert Schwarz, and Arthur A. Stone explores the relationship between income and subjective well-being. Despite the common belief that wealth increases happiness, survey data show that reported life satisfaction and happiness have not significantly changed over the last four decades despite substantial income growth. The authors attribute this to the focusing illusion, where people overestimate the impact of specific factors, such as income, on their well-being. They find that increases in income have a transient effect on reported life satisfaction and that the correlation between income and subjective well-being is weaker when measured in real-time experiences rather than global judgments. The article also discusses how the focusing illusion can lead to misallocation of time and resources, such as accepting long commutes or sacrificing socializing time. The authors conclude that the focusing illusion may explain why many people seek higher incomes, even though the long-term effects on happiness are relatively small.