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The past research claims that poverty has a broad negative impact on happiness of individuals. The money doesn’t make you happier, but lack of money makes you sadder. It has been observed that the poor are more likely than the affluent to be exposed to stressful life events, such as unemployment, illness and victimization etc. Poverty is not only economic limitations of people, it also encompasses the dissatisfaction of psychological and psychosocial needs, which if met, would elevate well-being of individuals. This paper uses inductive approach to understand the economics of happiness and a feeling of powerlessness in poverty-stricken population and attempts to uncover how poverty leads to a lack of happiness.

The Easterlin Paradox- The Haves, The Have-Nots and The Happiness