It is an old question and after the fall of the Sovjet Union and China successful entering the world market, almost nobody believes in socialism anymore.
I want to stress that I do not want to advocate socialism, since besides the economic effects that could be benificiary (up to some level) it also tends to lead to suppression of people and I am definitely against that.
But recent studies indicate that rich countries which have a progressive income tax (up to 58%) for the highest incomes have the best economies and people also have the highest level of happiness in the world
At the top of the list are Scandinavian countries like Denmark and Norwegia and other north european countries like my own (the Netherlands).
The level of hapiness coming from money does not seem to rise anymore beyond a border of 20.000 euro/year. At that level anyone can live in a house, drive a car and have a vacation. Other hapiness indicators become much more important.
But if a country has high differences in income, even in rich countries the crime rate increases, poverty exists, unhealthy living patterns, high medicine usage occur etc, etc...
You could conclude that if the difference between rich and poor is to high in a country, people will get fat and angry.
There is also a limit to levelling income. People who work should definitely earn more than those who don't (regardless of the reason why) otherwise people are not sufficiently motivated. Entrepreneurs also should be rewarded for taking the risk of starting a business or they simply won't do that enough.
This article is based on the first "World Happiness Report" and the book "The price of inequality"
You could say, money does make you happy to a certain point and then it loses most of its value.
That's all for today. I hope you like my findings.
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