Does it even matter what your neighbours are making? I've made four figures living among millionaires and I've made six figures living among people living on welfare. I didn't really feel any different in either spot.
Challenging yourself to earn more, and actually seeing the numbers rise, is where the joy comes from, at least in my experience. If you are challenging yourself and your income isn't rising (or falling, even) it is pretty disheartening. If you aren't challenging yourself, I expect life becomes pretty boring. Either way, I can see why happiness is linked to income deltas, even once the basic means are covered and presumably people with higher incomes have seen more changes.
The more well-off people around you are, the less-well-off you are, since their increased wealth increases demand and prices rise. See, for example, Bay Area home prices.
I don't necessarily feel this way either however it's a thought experiment to pose in regards to the concept of "keeping up with the jones's" and explains a large part of the population's consumerist drive.
"I've made four figures living among millionaires and I've made six figures living among people living on welfare. I didn't really feel any different in either spot."
Then for better or worse, you are unusual. Most people notice disturbances when they are significantly different from their peers in this regard.
However, I wonder if location is having less of an impact now that we connect with our peers over technology instead of physical location (IE, neighbors).
"Does it even matter what your neighbours are making?"
Yes. If you make significantly more than the people around you, it's more difficult to make friends with the people in your community. If they know, people will ask you for money, treat you differently, and some will be jealous. It's sad..but true.
"If you are challenging yourself and your income isn't rising (or falling, even) it is pretty disheartening"
Challenging yourself to earn more, and actually seeing the numbers rise, is where the joy comes from, at least in my experience. If you are challenging yourself and your income isn't rising (or falling, even) it is pretty disheartening. If you aren't challenging yourself, I expect life becomes pretty boring. Either way, I can see why happiness is linked to income deltas, even once the basic means are covered and presumably people with higher incomes have seen more changes.