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Luth Research's IndicatorEDG(TM) Study Finds Americans' Hopes of Achieving Their Dreams Are Fading
Date:2/10/2010

people look for substantive, good news to boost optimism and justify spending."

Less hope, less happiness

Whether it is the economy or other factors, Americans' happiness has declined over the past three years.  In Q3 2006, 75% of Americans said they were very happy (31%) or somewhat happy (44%.)  Now 68% say they are very (25%) or somewhat (43%) happy.  

This ebbing of happiness does not appear to have one core manifestation.  In fact, there has been a consistent 3-4 percentage point drop in Americans' happiness with their communities, family life, work life, romantic life, residences and social life.  The question is how long will it take for an improving economy to restore happiness to the levels we saw three years ago.

Who is happy?

  • Women (71%) are happier than men (65%.)  There is no politically correct interpretation here.
  • The happiest demographic group identified is Americans with household incomes of $100,000+ - 81% of whom are very or somewhat happy.  There is a historical threshold of income around $50,000 beyond which people are generally happy regardless of their incremental earning power. In more challenging times, a stronger relationship between money and happiness seems to be emerging.  

Technology still rocks

One bright spot is that there are some really sizzling technology products.  Between 60% and 70% of Americans think the following products are hot: digital cameras, car navigation systems, text messaging, DVRs, iPhones, iPods, and cell phones with video cameras.  Some of these technologies are creating even more heat and some are waning in hotness.

Technology to watch: OLED TV – not hot yet, but building heat.

Luth notes, "Even in tough economic times, consumers will reward th
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SOURCE Luth Research
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