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Interesting questions NamelessHero, not addressed to me but I quite like such topics so will offer a response if you don't mind.
I think there are levels of desire. First and foremost is the natural desire for survival - eating, drinking, safety and reproduction. Second are knowledge desires - all animals are curious, they investigate, they are curious, but to differing degrees, they usually don't let their curiosity get in the way of their natural desires. Although sometimes they do - hence the phrase "curiosity killed the cat". Finally, are other desires which are common only really to humans, and usually only humans in developed well off countries. These are things like having a nice car, having a big house, TV, skybox etc. etc.
Only the first set of natural desires are truly necessary for happiness. That's why you see some of the poorest people in the world being some of the happiest people in the world, as long as they've just about got enough to survive and bring up their kids. Similarly, if a rich person loses their child, they are distraught regardless of how much money they've got.
However, when you get into a position of safety your knowledge desires grow. For the majority of people in developed countries, we're all well off. Even those who are on minimum wage and live in small crowded apartment blocks etc. have got a roof over their head, food and water. That's better off than plenty of people in Africa and other non-developed areas of the world. When we get to that level, our happiness isn't just about survival, it's also about quenching our thirst for knowledge. Now one person's knowledge desires can be totally different to others - but we all have interests that we enjoy. Anyone who is not battling for survival will need these sorts of interests to be happy.
The third lot is not important at all, ever. Money, cars, houses. They aren't interests that pique our desire for knowledge, they don't help our survival any more than a smaller house or cheaper car would do. Essentially they are 'showing off', they are superfluous to our needs.
So to answer question 2; money is important in that it is our best way of meeting survival needs in our communities. (If you put us on a desert island then we would need other things to survive, but where we currently live, money is the main path to survival.) Given that we've got our survival sorted, a little bit of extra cash for things that pique our interests is also important - enough to join sports clubs or visit places/things we want to see, etc. This level of money is not much; you can be very 'poor' by UK/US standards and still fulfill these two levels of desire. Any more money than that is getting into the third category of desires which I do not think improve happiness whatsoever.
7k thnks for the comments...nice little analysis...sounds nice however i am not sure it is correct however cant exactly point my finder right now to what is perhaps missing or misdirecting...
btw have you ever been to africa?
btw heres another interesting picture and hapiness perspective, where more money is less hapines and less money more hapiness... this will add some three-dimensionality to the discussion...
Would you rather be a kid on the first pic or the second?
Sure enough peope on the 1st picture have more money but i dont think they are more happy if happy at all..
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