Using longitudinal data from over 100 countries, Diener and his colleagues showed that rich countries are in general happier than poor countries (Diener, Tay, & Oishi, 2013).[17] Also, life satisfaction for most countries goes up as they become wealthier over time. Diener identified three factors that influence the relationship between income and SWB. Namely, rising income most likely results in higher SWB when it leads to greater optimism, financial satisfaction and household material prosperity among citizens. Furthermore, Diener and his colleagues investigated the relationship between income and different elements of SWB. They illustrated that income has stronger influence on people’s evaluation of their lives than the positive or negative emotions they experience over time (Diener, Kahneman, Tov, & Arora, 2010).[18] The study points to the necessity to evaluate different elements of SWB separately instead of treating happiness as a single entity.
Over the years, the town of Euphoria has grown more successful and wealthier than anyone ever thought. As the wealth has increased and people have acquired more material possessions, their outlook on life has become more positive and it has been noted that the citizens have a lower incidence of depression. The town of Zenphora, on the other hand, has taken a downward financial turn over the past 50 years. The citizens have had to sell their worldly goods just to make ends meet and many do not have a good feeling about what their future holds.

Which town is more optimistic, Euphoria or Zenphora?