Economics

Hedonic Treadmill

Published Oct 25, 2023

Definition of Hedonic Treadmill

The Hedonic Treadmill is a theory that explains how humans tend to return to a relatively stable level of happiness or satisfaction after experiencing positive or negative events in their lives. According to this theory, individuals adapt to changes in their circumstances and eventually revert to their baseline level of well-being, regardless of significant life events.

Example

To better understand the Hedonic Treadmill, let’s consider the example of winning the lottery. Winning a large sum of money is often seen as a life-changing event that should bring everlasting happiness. However, research has shown that while lottery winners experience an initial boost in happiness, they eventually adapt to their newfound wealth, and their happiness levels return to their pre-lottery state.

Similarly, individuals who experience negative events, such as the loss of a loved one or a job, may initially feel a significant decrease in happiness. However, over time, they adjust to their new circumstances and eventually return to their baseline level of well-being.

Why the Hedonic Treadmill Matters

Understanding the concept of the Hedonic Treadmill can help individuals manage their expectations and make more informed decisions. It suggests that constantly seeking external factors, such as material possessions or achievements, to increase happiness may be futile in the long run. Instead, individuals can focus on developing internal sources of happiness, such as cultivating positive relationships, practicing gratitude, and finding fulfillment in meaningful activities.

Moreover, recognizing the Hedonic Treadmill can also guide policymakers and society as a whole in creating a more sustainable approach to well-being. It emphasizes the importance of investing in factors that contribute to long-term happiness, such as education, social support systems, and mental health services, rather than relying on short-term stimuli.