Fed chief to grads: Money won't make you happy

WASHINGTON - Ben Bernanke, the one American who might be expected to know all that money can do, Saturday reminded a group of college grads what it can't do: buy them happiness.

The Federal Reserve chairman delivered the message to graduates of the University of South Carolina.

"We all know that getting a better-paying job is one of the main reasons to go to college. . . . But if you are ever tempted to go into a field or take a job only because the pay is high and for no other reason, be careful!" Bernanke said in his commencement address.

"Having a larger income is exciting at first, but as you get used to your new standard of living and as you associate with other people in your new income bracket, the thrill quickly wears off," he said.

Studies found that just six months after winning a large lottery prize, people reported being not much happier than they were before winning, Bernanke said.

His advice blended what economics and social science have to say about personal happiness. When you boil down all the studies and fancy formulas, it sounds a lot like what your parents told you: Money can't buy you happiness.

Happiness research is useful for policy-makers, too, Bernanke said.

The Fed's goals include promoting economic growth and employment. Richer countries tend to report higher levels of satisfaction because they tend to be healthier, have more leisure time to pursue hobbies, and have more interesting work, Bernanke pointed out.

Sometimes being unhappy is a good thing.

"It is possible that doing the ethical thing will make you feel, well, unhappy," Bernanke said. "In the long run, though, it is essential for a well-balanced and satisfying life."