On one hand, some people argue that poverty is strongly correlated with unhappiness. They point out that people living in poverty often face a range of challenges and stressors, including limited access to basic needs like food, housing, and healthcare. Financial insecurity and uncertainty can also create significant anxiety and stress, especially if individuals are struggling to make ends meet or facing debt.

Moreover, those living in poverty may also have limited opportunities for social mobility, education, and career advancement, which can lead to a sense of hopelessness and frustration. Studies have shown that people who experience economic hardship tend to report lower levels of life satisfaction and overall happiness compared to those who do not.

On the other hand, there are those who argue that happiness is not solely determined by one's financial situation. While poverty can certainly create significant challenges, it is possible for individuals to find joy and fulfillment even in the face of adversity. In fact, some people argue that those living in poverty may have stronger social support networks and more meaningful relationships than those who are more affluent.

Additionally, research has shown that happiness is not solely determined by external circumstances, but also by internal factors like personal values and attitudes. For example, people who prioritize relationships, personal growth, and community engagement tend to report higher levels of life satisfaction and happiness, regardless of their income level.

One of the key arguments made by those who believe that poverty is strongly linked to unhappiness is that people who live in poverty are less likely to be satisfied with their lives. This is often attributed to the fact that people living in poverty lack the resources necessary to meet their basic needs, such as food, housing, and healthcare. Research has shown that people living in poverty are more likely to experience chronic stress, which can lead to a range of negative physical and mental health outcomes (Kossoudji & Cobb-Clark, 2002).

However, some critics argue that the link between poverty and life satisfaction is not as straightforward as it may seem. For example, some studies have found that people living in poverty may have different expectations and priorities than those who are more affluent (Sahn & Stifel, 2003). Additionally, some researchers have argued that the relationship between poverty and life satisfaction may be more complex than a simple cause-and-effect relationship, with other factors such as social support, personal resilience, and cultural values also playing a role (Sen, 1999).

One of the key measures of happiness is life satisfaction, which is often used as a proxy for happiness. Some studies suggest that poor people are less satisfied with their lives than their wealthier counterparts. For example, a study by the World Bank found that people living in extreme poverty are significantly less satisfied with their lives than those living above the poverty line (World Bank, 2016). Similarly, a study by the University of Warwick found that income is strongly associated with life satisfaction, with wealthier people reporting higher levels of satisfaction than poorer people (Clark et al., 2008). These studies suggest that poverty has a negative impact on life satisfaction and, therefore, happiness.

Another key argument made by those who believe that poverty is strongly linked to unhappiness is that poverty can have a range of negative impacts on people's lives, such as increased stress, poor living conditions, and reduced opportunities for social and economic mobility. These impacts can be particularly pronounced for children growing up in poverty, who may experience developmental delays and struggle to succeed in school.

Poverty can also have negative impacts on people's lives in other ways. For example, poor people may struggle to access basic necessities such as food, shelter, and healthcare. They may also face social exclusion and discrimination. All of these factors can contribute to feelings of hopelessness, anxiety, and depression, which can, in turn, negatively impact happiness (UNDP, 2021).

One key issue that affects overall well-being is the barrier to accessing education. Education is essential for improving economic opportunities, increasing social mobility, and improving health outcomes. However, poor people may struggle to access education due to a range of factors, including the cost of schooling, lack of resources, and discrimination (UNESCO, 2021). This can limit their ability to improve their economic situation, which can negatively impact their overall well-being.

Despite the evidence linking poverty and happiness, some critics argue that the relationship is more complex than commonly believed. For example, Amartya Sen, an Indian economist and philosopher, has argued that poverty is not simply the absence of material resources but also the absence of capabilities, such as the ability to participate in society and the ability to make choices (Sen, 1999). Therefore, poverty can negatively impact people's happiness by limiting their ability to participate in society, rather than simply by limiting their access to material resources.

Similarly, Martha Nussbaum, an American philosopher, has argued that poverty can negatively impact people's happiness by limiting their ability to live a "full and dignified" life (Nussbaum, 2000). She argues that poverty can limit people's ability to develop their talents and capabilities, which can prevent them from living a fulfilling life.