How to be happy during a pandemic

Happiness is lower, insomnia is higher and there has been an increased incidence of mental health issues during the pandemic. This raises the question of how people can find more ways to be happy during these difficult times. We humans are often creatures of habit, slow to adjust to new circumstances, so which changes should we make?

One striking feature of the pandemic is that U.S. personal savings rates have spiked. In April, the rate exceeded 30%. It has been falling, down to 19.5% in June, and will probably fall further yet. But it is still much higher than it was in the pre-covid era, when it ranged from 3% to 8%.

Despite these falling rates, Americans probably ought to spend even more. Savings have been so high in part because people are hoarding resources for an uncertain future. But a lot of the explanation, especially for those with higher incomes, is that planned expenditures became impossible, dangerous or inconvenient. Instead of flying to Paris and staying at a hotel on the Seine, they drove to a cabin in Maine or West Virginia.

Or maybe they postponed that purchase of a new car or spent less time browsing in a bookstore. In any case, the end result is less spending and more savings, whether conscious or not.

Those may well have been prudent decisions. Still, many of us are not spending enough money having fun. We have been too slow to develop new, covid-compatible interests.

Sign up for the daily JWR update. It's free. Just click here.

So think how you might achieve more pleasure from spending money. Ordering more books? Spending more time at the farmer's market? Subscribing to more online newsletters? If you wish to see the new movie "Tenet," for example, but fear virus exposure, you and your friends may be able to rent out a whole theater for less than $200.

To some extent people are already doing such things. But it is a common result in empirical economics that consumption habits are slow to adjust to changing circumstances, especially unprecedented circumstances. It is not enough for you to develop new spending habits - you should double down on them.

You also should be giving more to charity. Remittances from the U.S. to Mexico have risen recently, an unusual outcome in a typical recession. Part of the story is that Mexican migrants have fewer ways to spend their money in the U.S., due to covid-related restrictions, and their relatives and friends in Mexico are in needier positions. So follow their lead and do more to help people around the world. It might prove more rewarding than buying more heirloom tomatoes.

A related piece of advice: Tip more, either when you eat out (preferably outside) or when you receive home delivery of food. Waiters and food-service delivery people face higher levels of danger on the job, and are more likely to have precarious family financial situations. So if you used to tip 15%, try 20% or 25%. Just dip into those savings.

You also should spend more time driving to see your friends. (If you have kids at home, you might consider giving both yourself and them a break and driving them to see their friends.) In most parts of America, traffic is noticeably less than it was before the pandemic, so take advantage of that. I recently visited a friend for an outdoors lunch in Washington, D.C. What used to be a 75-minute trip from Virginia now took only 45, and with much less uncertainty.

If you are like me, you probably know a lot of people who live just a little farther away than you are used to traveling. Suddenly they are closer than you think. Meeting in person, even with social distance, is one way to lessen the emotional isolation many people are experiencing because of the pandemic.

The stresses and problems of the pandemic are very real, and we can't just wish them away. But we are imperfect creatures of habit and routine, and if we can accept just a bit more change at the margin - starting with our wallets - it can help us all.

(COMMENT, BELOW)

Cowen is a Bloomberg View columnist. He is a professor of economics at George Mason University and writes for the blog Marginal Revolution. His books include "The Complacent Class: The Self-Defeating Quest for the American Dream."

Previously:
• 09/04/20 Trump is winning the vaccine debate with public health experts
• 07/01/20 Why Americans are having an emotional reaction to masks
• 05/20/20 Covid-19 will expose the ghosts in the U.S. economy
• 05/07/20 Are aliens visiting us? US military seems to think so
• 05/06/20 America's reopening will depend on one thing --- trust
• 04/22/20 How the covid-19 recession is like World War II
• 04/15/20 America is returning to 1781
• 04/08/20 Covid-19 is is upending everything for status seekers
• 03/17/20 The coronavirus will usher in a new era of entertainment
• 01/28/20 Social Security isn't doomed for younger generations
• 01/08/20 Why 2020 is harder to predict than 2019 was
• 12/02/19 Equality is a mediocre goal so aim for progress
• 11/25/19 Inflation inequality creates winners and losers
• 11/09/19 OK kids. This boomer has had enough
• 10/20/19 Would you bet against Trump in 2020?
• 09/25/19 The right industrial policy for America
• 09/24/19 Harvard's legacies are nothing to be proud of
• 09/02/19 Yes, the Fed could still stop a recession
• 08/20/19 A trade deal with China wouldn't change much
• 07/29/19 How your personality traits affect your paycheck
• 07/16/19 Internet 101 should be a required class
• 05/28/19 How Dems actually are the ANTI-immigrant party
• 04/23/19 Want to help fight climate change? Have more children
• 03/22/19 America isn't as divided as it looks
• 03/12/19 The Twitter takeover of politics: You ain't seen nothing yet
• 03/04/19 How to tell which Dem dreams won't come true
• 02/07/19: Now the Dems want to end America's nuclear first strike option. How clueless is that?
• 01/29/19: The shutdown hit a lot of government workers --- hard. But, ultimately, who is responsible for their unfortunate circumstances?
• 12/12/18: The West is abusing its legal power to punish people or institutions that do things it doesn't like. It better stop
• 10/23/18: The US needs Saudi Arabia, and vice versa
• 10/19/18: The right finds the perfect weapon against the left
• 07/24/18: The drive for the perfect child gets a little scary
• 06/04/18: Side effects of the decline of men in labor market
• 05/14/18: Proving Marx's theories right
• 05/08/18: Holding up a mirror to intellectuals of the left
• 05/01/18: Virtual reality will make lives better ... mostly
• 04/16/18: It's hard to burst your political filter bubbleIt's hard to burst your political filter bubble
• 04/09/18: The missing key to grasping why American politics seems to have become more polarized, with no apparent end in sight
• 04/05/18: Two American power centers are about to clash
• 03/22/18: We fear what we can't control about Uber and Facebook
• 03/08/18: How to stop the licen$ing insanity
• 01/10/18: Polarized Congress needs to bring back earmarks
• 12/27/17: The year when the Internet collides with reality
• 11/07/17: Would you blame the phone for Russian interference?
• 10/23/17: North Korea is playing a longer game than the US
• 10/12/17: Why conservatives should celebrate Thaler's Nobel
• 08/02/17: Too many of today's innovations are focused on solving problems rather than creating something new