America got rich and got sad. A top economist says 2020 broke something that hasn't healed

Key Points:

• American happiness has plummeted to its lowest point in 50 years, with a sharp 22.2-point drop in 2020 during the pandemic, and only a partial recovery since then, signaling a fundamental shift in societal well-being described as a “regime change.”
• The “aspiration gap” explains declining satisfaction: people’s happiness depends on how their current status compares to their reasonable expectations, not absolute income, with the most educated and wealthy experiencing the steepest declines due to unmet expectations.
• Trust in institutions and perceptions of fairness have collapsed alongside happiness, fueling polarization, social fragmentation, and a pervasive sense of grievance, which undermine social cohesion and progress.
• Marriage remains a strong positive factor for happiness, but with nearly half of American adults unmarried and experiencing significantly lower happiness, society is becoming increasingly divided along marital lines, exacerbating social challenges.
• Solutions emphasize rebuilding trust and connection through local institutions, relationships, and community support, recognizing that closing the aspiration gap requires addressing emotional and social needs rather than solely economic measures.