Long, but well worth the read. I’ve tried to summarize the best points here.

In a typical survey people are asked to rank their sense of well-being or happiness on a scale of 1 to 7, where 1 means “not at all satisfied with my life” and 7 means “completely satisfied.” Of the American multimillionaires who responded, the average happiness score was 5.8. Homeless people in Calcutta came in at 2.9. But before you assume that money does buy happiness after all, consider who else rated themselves around 5.8: the Inuit of northern Greenland, who do not exactly lead a life of luxury, and the cattle-herding Masai of Kenya, whose dung huts have no electricity or running water. And proving Gilbert’s point about money buying happiness only when it lifts you out of abject poverty, slum dwellers in Calcutta—one economic rung above the homeless—rate themselves at 4.6

…Americans who earn $50,000 per year are much happier than those who earn $10,000 per year,” writes Gilbert, “but Americans who earn $5 million per year are not much happier than those who earn $100,000 per year

…If more money doesn’t buy more happiness, then the behavior of most Americans looks downright insane, as we work harder and longer, decade after decade, to fatten our W-2s. But what is insane for an individual is crucial for a national economy—that is, ever more growth and consumption. Gilbert again: “Economies can blossom and grow only if people are deluded into believing that the production of wealth will make them happy … Economies thrive when individuals strive, but because individuals will strive only for their own happiness, it is essential that they mistakenly believe that producing and consuming are routes to personal well-being.” In other words, if you want to do your part for your country’s economy, forget all of the above about money not buying happiness.

Source: Newsweek

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