What You Have VS How You Compare To Others

An excerpt from the blog below. How people look at their life in terms of relative size (how you compare to others) instead of absoulute size (what you have)... Think about it... Are you in this trap...


http://sgbluechip.blogspot.com/2010/04/is-singapore-really-that-bad.html

"Robert H. Frank, professor of economics at Cornell University, says that most people find the first option more attractive. When it comes to salaries, we care more about relative size than absolute size. What matters most is earning more than our neighbours.


The same holds true for all sorts of things. The actual size of our apartment matters less than its size compared to everyone else's. And most of us will settle for a modest car - provided our neighbour is driving something worse.

It is a sobering thought. We assume that getting a pay rise, or moving into a new apartment, or trading-up to a better car will bring us increased levels of happiness and satisfaction. In fact, many of us simply raise the bar on what counts as adequate.


We work longer hours, earn more, spend more and consume more. Meanwhile, everyone else does the same. So, by comparison, we are no better off, and therefore no happier.

How true?"