confident senior businessman holding money in hands while sitting at table near laptop
Photo by Andrea Piacquadio on Pexels.com

I saw this linked by Tyler Cowen’s blog, that yes, money does buy happiness. Psychotherapy, however, does not make people happier:

We study the economic and psychological effects of a USD 1076 PPP unconditional cash transfer, a five-week psychotherapy program, and the combination of both interventions among 5,756 individuals in rural Kenya. One year after the interventions, cash transfer recipients had higher consumption, asset holdings, and revenue, as well as higher levels of psychological well-being than control households. In contrast, the psychotherapy program had no measurable effects on either psychological or economic outcomes, both for individuals with poor mental health at baseline and others. The effects of the combined treatment are similar to those of the cash transfer alone.

The Comparative Impact of Cash Transfers and a Psychotherapy Program on Psychological and Economic Well-being

Obviously, this is just one study, has limitations, etc. But it does conform to my pre-existing prejudices that in many situations, simple solutions that empower people to take control of their own lives are better than sending an expert to talk to them.

Michael Josem is a long-term consumer advocate, most prominently as a global leader in combating fraud in the online gambling industry. He was in part the inspiration for the 20th Century Fox Movie, Runner Runner, starring Ben Affleck and Justin Timberlake.

Josem has over a decade of experience as a senior business leader working across various high-tech and online industries, and takes action to build a better community. His primary volunteer roles include service for the Commonwealth War Graves Commission, and Graih, the homelessness charity.