Levels of both general happiness and of satisfaction with various aspects of our lives have been declining in the U.S. for at least a quarter century, and perhaps much longer. This reflects the declining power of money — the one source of happiness that the market can provide — to make people happy. In fact, the true sources of happiness, especially people and relationships, are ignored or treated as mere externalities by the market, with little concern for whether market activity enhances or inhibits them. Examination of the labor market provides especially clear evidence of the ability of markets to actually inhibit, rather than facilitate, utility maximization.
