“Did you listen to Rick Steves this afternoon?” Kris asked me on Sunday. I shook my head. “That’s too bad,” she said. “It was about the relationship between money and happiness. I think you would have liked it — and so would your readers.”
“But I just wrote about happiness!” I said.
“J.D.,” she said. “You can never write too much about happiness.” And so I tracked down last weekend’s episode of Travel with Rick Steves and listened to his discussion with Eric Weiner about “the geography of bliss”. Kris was right. This is good stuff.
The geography of bliss
Weiner is a long-time correspondent for NPR. His new book, The Geography of Bliss, is about “how place — in every aspect of the word — shapes us, defines us.” It’s about finding the happiest places on Earth.
In Steves’ interview with Weiner, they compare and contrast “national happiness” in countries around the world. What makes some cultures happy and others less so? Is it wealth? Freedom? Or is it something else?
The show explores the relationship between democracy, consumerism, capitalism, envy, and happiness. There’s also a discussion about the role of religion and spirituality. And, of course, Steves and Weiner talk about the connection between money and happiness. Weiner says:
If we’re talking about the relationship between money and happiness, what really matters is how you feel about money. There have been studies that show that people are materialistic — irrespective of how much money they actually have — people who are materialistic tend to be less happy than people who are not. [...]
Switzerland is a very wealthy country, but they don’t really show off their wealth. It’s not a “if you’ve got it, flaunt it” kind of society. It’s an “If you’ve got it, hide it” society because they don’t want to provoke envy in others. Americans are more individualistic and…flashier, I think.
Close relationships are a better predictor of happiness than monetary wealth. “Happiness is other people,” Weiner says. “Our happiness is determined in large part by our quality and quantity of relationships with others.”
Expectations and happiness
To me, the most interesting part of the conversation explored the connection between expectations and happiness. How does our sense of what we “deserve” affect how content we are? I liked this exchange so much that I’m going to quote a huge chunk of it:
Steves
I know it’s dangerous to make sweeping generalizations, but when you compare Europeans to Americans — we’re like the richest people on the planet, we’re all embracing democracy — but we’ve got some fundamental differences. What is it in Europe that makes them happy compared to us and vice versa?Weiner
That’s a good question. European countries — especially northern European countries: Switzerland, Denmark, et cetera — tend to be happier than we are in these surveys. (The Netherlands I would include in that as well.)Let’s talk about Denmark, for instance, because Denmark ranks consistently in the top three for happiest countries in the world. The Danes have low expectations. In survey after survey, they’re asked about expectations, and they have relatively low expectations. We Americans have very very high expectations. And I think that partly explains the discrepancy.
I think if you have low or moderate expectations, you’re less likely to be disappointed. You’re more likely to be satisfied or content. You’re more likely to be happy.
I realize that rubs a lot of Americans the wrong way because we pride ourselves on living in a country where everything is possible. I just returned from a week’s vacation in Disney World. You go to the Magic Kingdom, and the refrain there is “dreams really do come true”. They sing it over and over again in the parade there and they talk about it. That is a very American idea.
It’s great if your dreams do come true, but it’s going to disappoint you and make you a little less happy if they don’t.
I think more modest expectations among Europeans might partly explain this.
Steves
Isn’t that interesting. I was just in a taxi in Chicago and there was some guy from Somalia or something driving the cab. It was a beat up old cab, and he was just happily drumming his steering wheel, saying, “America! You can win the lottery and be rich!” And I thought, well he’ll never be rich. But he was just living in this land where dreams can come true. Just to be close to it, he was happy.I was just in Denmark, and it occurred to me there’s not a hint of a Big Gulp society there. They get little cups, and they sip it. They pay twice as much for a little cup as we pay for a big cup and they just sip it.
I’m intrigued by the notion that our happiness is related to our expectations.
I think that many Get Rich Slowly readers have found this to be true. I know that I have. I used to feel that I deserved to have nice things, that I was entitled to have a new car and a big house and the latest gadgets. I wanted to have what my parents had — but I wanted it when I was 30 instead of 50. Because my expectations were high, I spent to meet them.
My high expectations led to lifestyle inflation: As I earned more, I spent more. But I wasn’t any happier.
Once I learned to embrace frugality, I found that I could not only be happy with what I already had — I could be happy with less. Many others have reported this same experience. Frugality and thrift are about lowering our expectations, about learning to sip from a small cup — and enjoy it! — instead of inhaling a Big Gulp.
There’s a lot more from this program that I’d like to write about (including the role the media plays in creating happiness — or, more to the point, unhappiness), but if I go much further, I’ll have transcribed the entire interview. If you have 30 minutes to spare, I highly recommend this show. The interview takes up the first half of last weekend’s Travel with Rick Steves.
This article is about Interviews, Psychology, Travel
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I think a good spot is having expectations but then not getting upset if they don’t happen. Most of us try our hardest to get them, so why beat yourself up? Not saying I do this well myself, but I’d like to more often.
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“Aim low and you’ll never miss”
“Expect the worst, and you’ll never be disappointed.”
I’ve forgotten where I read those quotes. At the time, I thought they were great quotes (still do actually).
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I keep wondering if we will ever change, even in this current economy, our high expectations. Our wealth as a nation seems closely tied to how much we spend as consumers. I’ve scaled back significantly in recent years and am taking that further, not because I am afraid of a job loss or other financial setback, but because I’m finding, as I explore frugality like JD, I don’t need alot to be happy. When I have too much, I see it as junk and am actually unhappy.
My happier times are when I pack up for camping, or stay in a vacation cottage where I don’t have much to entertain me but a book and a journal. Trying to get my everyday life to match that is a source of high expectations in and of itself. And I do get upset when I seemingly fall short, but it is a process, and I can see the progress. It may be that I never reach the ideal, but I do very much look up to the Europeans who live much more modestly and less wasteful than most of us Americans.
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This is a great post. It’s so interesting to me because there’s a fine line between lowering expectations and being complacent. I know I can be happy with less material possessions and that’s a good thing. But I don’t want to just settle with whatever comes my way. I want to be successful and I guess in order to do that you have to risk failure which has the potential to make you unhappy. Just my thoughts.
-Gen Y Investor
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The fact is that happiness does not grow exponentially much after $40,000 a year or when all your basic needs are me such as shelter, food..etc. So living your dream is all in your head after that, and if you learn to live in the present moment, that is the path to pure bliss. Living away from the “now” is like wasting your life in the future or past. But most people don;t set that.
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EllenRN: Good point on perception — do you mean yours or mine?
I can come up with countless examples of people I know with money treating others poorly, but I can come up with even more examples of people who were happy, generous, kind and honest whether they had a little money or a lot. I could see this from an early age because I was always in the middle, but many of my well-off friends and family didn’t. All I seemed to hear about was how they “deserved” their big purchases (cars, jewelry, trips, big houses, gadgets, etc) because they “worked so hard”.
I want to give them a good shake and tell them that I knew plenty of people who worked as hard as they did. They “deserved” better because they had money to buy it, not because they were better people.
I’m trying to wipe the term “I deserve” from my vocabulary. “Needs” and “wants” are far more effective frameworks for budgeting. If I want things, I can save up for them and stay below my means. If I feel I deserve things, then I’m going to be disappointed because my finances don’t match my expectations.
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Great article J.D. I am an Indian and I haven’t been able to look up to the ranking of my country on the Happiness scale but from my personal experience I know that we are a lot happier than many countries I have visited/lived in even if we are relatively “poorer”. We were brought up on the philosophy of divorcing the outcome from the effort. While putting in effort is in one’s hand, the outcome (rewards) is not. If you are not obsessed with the reward for your actions, you are unlikely to be disappointed which is what this article also mentions.
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Maybe the point of tension here isn’t expectations per se, but rather what it is that we expect.
My guess is that the expectation of a better life is probably universal. The problem here in America is that our expectation of a better life probably incorporates a few too many expensive bells and whistles–and those are the things we’re stressing over. It’s evidenced in the fact that we take on more debt than other cultures.
Our optimism may drive us to want for better things, but it won’t pay the bills for them. Maybe the Europeans, being older cultures, have that figured out already.
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“What makes some cultures happy and others less so? Is it wealth? Freedom? Or is it something else? ”
I think it is due to the weather. if you look at the first 50 countries on the Happy Planet Index, around 47 of them are located entirely between the Tropic of Cancer and Tropic of Capricorn. But if you look at the top 50 highest GDP per capita countries, they are ALL located outside the tropics.
It is intuitively obvious to me that folks living in a place where it is sunny, warm, and green for 365 days out of the year will be happier than people in places where it is overcast, cold, and grey for a big portion of the year. As it turns out global wealth is centered entirely in countries with horrible weather (i.e. North America, Europe, Japan, and Australia). And we piss away much of that wealth trying to artificially recreate the climate which all of the happy countries have naturally and for free.
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I’m very curious to see where Canada ranks. I’ve noticed that in most of the articles I’ve hunted down on this new survey, Canada isn’t included. We’re conspicuously left out of discussions about developed countries.
I wonder if it’s because we defy the pattern? In previous years, Canada has ranked among the top 10 for happiness. (I believe those surveys were based on OECD statistics, this new organization also factors in the environment so it’s a bit different).
The “Happy Planet Index” website had been down all day. Boo!
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Oops… Nevermind! Wikipedia to the rescue!
Canada is #89 — up from #111 in 2006.
Our less-than-stellar environmental record must be dinging us in this survey. We do well in other ones!
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Yeah, it has to be considered that this survey is heavily slanted toward green concerns, such as a small carbon footprint. That may or may not make a country a better place (not passing judgement either way here) but it doesn’t have a major impact on happiness on an individual basis. I mean, green is largely a collective concept, in that a county can have a smaller footprint because it has less industry or more public transportation, both of which may be more driven by the history of the country than any public directive.
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I’m not sure how well I fit in that.
I’m certainly happier living more frugally. But I don’t think I lowered my expectations.
I used to think that if something cost more, it was better. I would spend more money on less stuff, and be disappointed.
Now, I know that the value of things doesn’t depend on how much they cost. I find cheaper options that make me happier, and I feel good about making smart choices, when I used to feel terrible about wasting my money.
Now, when I do spend a lot, I do so with a good (or at least, better than I used to) reason, and that makes me happier too.
I do think it’s good to be satisfied with what you have. Thinking you can be a millionaire, and wanting it all right now, won’t make you very happy. But if you take small steps, you might very well become wealthy.
I think the problem is people wanting to have their cake and eat it. People want it all without having to work for it.
Once you realise working for things is more satisfying, that problem is solved.
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It’s always interesting to study the relationship between money and happiness. I think the biggest factor comes from what society you grow up in. American society is very goal-oriented, which I think contributes to the high stress levels.
-Mike S.
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I’ll tell you guys one thing though, doubling your income DEFINITELY contributes to happiness. I’ve had it happen 3 times up until 2007, and each time, my happiness was like a step function. The feeling lasts for a whole year, bc you’re giddy inside, and don’t really change your lifestyle. It starts to fade, a little, but not by much.
Having money takes out one of the Top 3 stresses people have.
Hence why I’m striving to reach financial independence by 40, but still work. Nothing beats working when you don’t have to work!
Best,
RB
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How low are your expectations supposed to go though? I mean, mine are already pretty darn low: Make enough money to be able to afford the very basics of rent, utilities, and food with a bit left over to save. I’m quite unhappy, because I can barely do that each month (i usually make it, but not without a lot of stress). The only bar lower to go really is “Stay out of the homeless shelter”. Money probably would buy me happiness.. it’d be nice to make a real living wage.
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Modest expectations = Modest Gains
If you dream big, you gain big. There is absolutely no doubt about it. You may be happier with lowered expectations, but you will only manifest what you expect.
Adam.
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Thanks for a really good post! It’s always good to fight against affluenza, whatever form it might have.
Btw, there isn’t any northern european country called “switzerland” – the country I think they are meaning is S w e d e n.
/a swede ( no, we haven’t got any polar bears on the streets either…
)
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RB — Good for you
I’m not being sarcastic here. I know too many people who give into lifestyle inflation when they start earning more money, and money is still a stress. (They end up stressed out about paying for their four cars, consumer goods and a much larger big house). I think an increase of income is best when you don’t majorly change your life.
A doubling of household income would certainly make me happy — but that would be because I found a husband. Right now, I think good relationships would greatly add to my happiness more than increased income, and this is going to affect my finances this fall. (Second job or join a club or sport? hmmmm…)
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I spent a lot (most) of my career after the CME trading floor working for NYSE firms starting with Paine Webber (UBS) in 1984. Lots of my clients were millionaires -most 2nd generation Chicago area folks who had worked hard beginning as youths, going to College or Trade School and beginnig their Own business.
Having control of your destiny is a most important choice we can make early in our lives, but it takes a plan, Goal and perserverance which is difficult when young.
I worked with very Rich people and the biggest difference I saw was their Focus on Money – how to make it, educating themselves and taking responsibility for their choices so they had a firm foundation to make correct decisions no matter what The Market was doing.
Others sought short term compensation and very much needed approval of others (affirmation). Life is an evolution; an ongoing growth of ideas and actions toward a fullness and appreciation of the Now.
I also saw that when one operates from Fear they usually are not as “happy or successful” because the stars-don’t-align.
Find out what you Love to do, research areas of employment/business and work toward that Goal. May I suggest reading Warren Buffet’s biography and or life story. Lot’s of Money, Simplicity, Self-education at early age (teens), and Friends and Fun!
Off to “work” now…
Enjoy the Day.
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Chris (70)–You’ve hit at the heart of the subject. It’s the square peg in the round hole conflict. Most people are working outside their element, playing a game they aren’t suited for. That can only end in frustration, stress and unhappiness.
Maybe those who pursue their own course are happier because they’ve granted themselves permission to do so. That may not produce a perfect life, but it will produce one filled with purpose, which can bring more happiness than money in many cases.
Chris is discussing rich clients, those who pursued their passions and crossed the goal line, but there are also people out there (and no small number!) who have taken a similar path and haven’t hit on the monetary rewards.
I’m still not certain why some people achieve this and others don’t, but it does appear that the journey itself seems to produce some level of happiness no matter where it lands. Perhaps it’s because a person pursuing his own path isn’t owned by anyone.
That would be an interesting thread by itself…
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I agree, it is indeed the journey not the outcome that is most important to success and happiness. What is also important is for the journey to be consistent with your intrinsic values, strengths, etc. For those readers interested in getting the most out of the journey (e.g. work, relationships, hobbies), check out Csikszentmihalyi’s seminal work, “Flow”. It cogently describes what happens when we “lose ourselves” in what we are doing. Flow provides immediate rewards. But, more importantly, it trains our minds to be better able to focus our awareness on the present. This skill goes a long way toward solidfying our well-being.
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@DC Portland–how funny, I just wrote an article and mentioned Csikszentmihalyi and flow. Before last week, I’d never heard of him. In a span of seven days I’ve read his name in four different places. Weird.
On the subject of becoming less materialistic, I certainly think it’s possible. I think materialism is something we learn from our environment, it’s not at all like being born homosexual or heterosexual.
I think I was materialistic (though I think most of us are and always will be, to some degree) because I didn’t know any better. But when I started to question it, I began to reject it more and more. People can change their degree of materialism…my monthly expenditures now compared with five years ago is proof of that!
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AD-How great is it to connect with people who have had very similar experiences in life? I left a 25-year career in financial management because it wasn’t providing me with purpose, fulfillment, and yes, happiness. I have found these things in communicating positive psychology and voluntary simplicity to the world.
I too was very materialistic five years ago. In fact, my past life (i.e. career, marriage, hobbies) was based on it. I was on my fifth Lexus and I wasn’t any happier. It’s funny how I look back on those days and it doesn’t seem like the same person. For anyone reading who is pursuing happiness through things, you really should look at changing your focus. I can tell you from experience that being “on the other side” is SO MUCH BETTER. I like the 1980′s lyric from Don Henley – “There ain’t no hearses with luggage racks”.
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“We Americans have very very high expectations. And I think that partly explains the discrepancy.”
To think about this from a different perspective:
Does anyone know what the Danish have done that was world-wide noteworthy or innovative in cultural, scientific, or literary circles in the past 10 years? 20? 50?
Go up to anyone on the street in the Western Hemisphere and ask that question. What kind of answers would an average joe say on the spot?
Probably nothing.
Now ask that question about the U.S.
The Internet
The Computer Revolution
Constant cultural innovation in music, the arts, etc.
Financial focus (the dollar is the standard currently)
Where does that come from? It’s our culture and the constant striving and “discontent” that is built in.
You have to take the bad with the good. If we ripped out the “discontent” we pretty much become a bunch of lotus-eaters, as an extreme example.
Happy, yes.
An Effective, innovating, striving culture. Maybe not.
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I have found that the less I want materially, the happier I am. And the less TV I watch, the less consumer goods I want. I’m raising my daughter as TV-free and commercial-free as possible. There’s so much more in life worth pursuing.
I have a high-paying IT job that I enjoy, and at least 25% of my money goes into savings and retirement. Being happy with what I have and not going into debt for stuff that I don’t need has given me great peace.
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@Chris (post 20) – Been a longtime passive reader of GRS. This comment by far struck so close to home. Couldn’t agree more with it. I’m living the nightmare now in suburban Chicago with a far bigger home than I need for a simple family of 3. Thankfully, I could(and can) afford the house, but to think that I’m wasting valuable time away from my daughter and tending to house projects both in and out. Suburban lifestyle is something that I have come to hate/detest/loath/abhor. My wife and I were far happier in a 1-bdrm apt in Chicago.
Like you said, live and learn.
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I’m an American currently living in Denmark.
If materialism is an obstacle to happiness, I have to say that the Danes are not very materialistic so that might contrite to their happiness. Some of this is because taxes are high (25%) and prices are high. But Danes very much value vacations and family time, and not things.
But I also think that Danes have a lot of social support that takes away a lot of their worries. There are many money concerns that Danes don’t have: the social services infrastructure-you can’t go bankrupt from healthcare issues, inability to get into credit card debt (your credit card is attached to your bank account and if you don’t put a payment in full in the next month, the bank does it for you), and the way that automatic contributions are made to their pension without having to do a thing.
I do wonder if these kinds of social benefits would work for a country of 300 million like the US – Denmark is 5 million people.
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I think most of the time when I expect a lot for myself, it’s not even because I want it, but because I know my parents will have a go at me for not getting things.
I hear their voice in the back of my mind saying “when are you going to get a real job?” (i.e., a highly paid one), “you should have a house by now”, and calling me useless. It’s hard to balance what I want with what other people expect of me, and the only way to satisfy both is to increase what I have. So I guess my experience agrees with point (1) from #5: Oblivious Investor.
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Lucy (80)–Your situation isn’t unique. Part of the reason so many people end up as square pegs in round holes, and not at all happy for the mismatch, has to do with early life programming. We’re often not living lives we would want for ourselves, but what others have told us is right. Maybe our desire not to disappoint others is greater then our desire to find happiness.
It isn’t just parents who do this, schools do it as well, as do well meaning friends and others. They don’t mean anything bad in it, they’ve probably been similarly programmed and don’t know any other way.
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This is a great post, but I just have to ask: when did Switzerland become a “northern European” country?
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I love that book. I just finished reading it a month ago or so. Was very interesting to read about other societies, ideas, and perspectives.
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I am late to this discussion, because I just got back from east Africa, where I have spent a number of summers. My experience there has been very relevant to this topic.
I do think that traveling to a developing country can be one way that people in our state of mind can learn to change their expectations, I disgree with those who argue that our expectations cannot be changed. I help to run a volunteer opportunity in east Africa for Americans, and though I do see some who find the experience unpleasant and clearly can’t wait to get back to a life of ease, most find it eye-opening and – revelatory in a way, I can’t say relaxing or always pleasurable, but they see the challenge of living in a place where you have only intermittent access to things like water or electricity as a way of appreciating what they do have and getting off the hamster wheel to experience life where people do things like subsistence farming and storytelling and never worry about being on time or e-mail or phones.
Everyone there is overwhelmingly and unexplainably happy. In fact, I have to admit that at times I almost grew irritated with their happiness. I would be irritated that people were not serious enough, spending all their time giggling and laughing and not getting things done as I, the American wanted to do, quickly and efficiently. But I even found myself irritated with it on the most basic level: feeling like Ebenezer Scrooge at times, walking down the street and seeing everyone laughing away and thinking “what do they have to be so happy about? This place is a hotbed of poverty and death!”
I met people with AIDS who had a CD4 count of less than 10 (it’s a disease marker meaning that you have almost zero immune system function left) who were happy as clams, thanking God for their lives. I met orphans working as basically indentured servants in other people’s mud huts, sleeping on a mud floor, with no possessions to their names who seemed joyous and carefree. I don’t mean to say that they were unaware of their plight, they knew they were poor, they would say that they wanted things like televisions, but they just weren’t depressed about these things.
Anyway, I don’t claim to know exactly why the east Africans are so happy compared to Americans, but I would encourage anyone who is interested in resetting their expectations to consider a trip to experience life at the very bottom of the development pyramid, the real experience living with people and trying to understand their lives. You really come back ready to evaluate your own lifestyle. Even for me, I consider myself to be quite frugal (a plastic bag re-user etc.) and I came home thinking “oh, how I have fallen from the path on which I should be living, and what I should be valuing.”
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Great post Quinsy! I really appreciated you taking the time to write it, even though it was late. It is refeshing to see that happiness and income are not connected at the hip. Surely, our society will be making some huge adjustments over the next twenty years in terms of reductions in consumption related to environmental degradation. Though we certainly do not wish to live like the average East African, it is wonderful to see that we can significantly reduce our levels of consumption and, perhaps, even improve our happiness and well-being. Thanks for some real proof!
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Quincy (84)–Their happiness may have something to do with the Bob Dylan song that goes “when you ain’t got nothin, you got nothin to lose”. I don’t know if we with our western mindset can ever comprehend that reasoning. But they live on the edge of death and are thankful for everyday that they live; we on the other hand, fully expect to live. They live without food and are overjoyed when they can eat.
I often think a lot of American kids could do with a few weeks or a month or more of exposure to life in such places, living among the families instead of in hotels. They’d be a lot more thankful for the blessings they enjoy at home and maybe less likely to take it for granted and thinking that having much is the natural order of things.
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