"On reflection, however, there is a shocking implication. Happiness researchers – yes, even Justin Wolfers! – have almost uniformly found little effect of income on happiness. If official statistics understate real income growth, what should we conclude?
Simple: Income’s effect on happiness is even smaller than it looks! According to Winship, for example, U.S. real income from 1969-2012 plausibly rose not by 16% (the standard estimate) but 45%. Yet our happiness still barely budged."