Finally, there’s a number and it’s $75,000. So says the New York Times, based upon a study by the National Academy of Sciences.
In many ways, achieving the right balance depends on one’s values, priorities, family obligations and spending habits. But according to a recent study in the Proceedings of the National Academy of Sciences, there is something of a magic number when it comes to income and happiness.
Beyond household income of $75,000 a year, money “does nothing for happiness, enjoyment, sadness or stress,” the study concluded.
This can be truly awful news for a lot of us. If that’s as happy as it gets, then we’re in deep trouble. And if you’re one of the many criminal defense lawyers who struggles to make the magic number, suffering the daily beating of a system designed to make your life miserable, you’re now staring squarely at the worst of both worlds.
The point isn’t that money buys happiness, but lack of money buys misery. That’s news to anybody who can’t pay the bills. And surprisingly, this isn’t the number for lawyers in Des Moines, but everywhere.
Where you live and the cost of living there has only a small influence on that number, he added. (That may be a revelation to some Manhattanites.)
Apparently, it’s not the accumulation of toys that makes one happy, but rather the ability to stop and smell the very expensive roses.
“Many people want to make a lot of money, but the benefits of having a high income are ambiguous,” said Professor Kahneman, who is also a Nobel laureate in economics. When you are wealthy you are able to buy more pleasures, he said, but a recent study suggests that wealthier people “seem to be less able to savor the small things in life.”
This makes me wonder whether Professor Kahneman has a mortgage, a kid in college, internet access and pays his taxes. If he’s able to cover his nut with a family income of $75,000, he’s one frugal guy. But the trade-off of money and satisfaction has been an issue lately, particularly with Biglaw associates complaining that they just aren’t happy. This even led to a lawprof, formerly of Chicago’s Kirkland & Ellis, arguing that associates should rate partners on their job satisfaction. as an incentive for law firms to make the lives of their employees funner. After all, associate happiness is the core of a lawyer’s reason for being.
A deeper understanding of the money/satisfaction connection appears via David Lat at ATL :
Last week I had dinner with a friend who used to work at a large law firm and now has a non-legal career. I asked her what, if anything, she missed about life in Biglaw.
“Just one thing: the paycheck,” she said. “I miss being able to go crazy in the shoe department of Bloomingdale’s.”
It’s a common sentiment among people who leave jobs at large law firms (in terms of missing the paycheck; not sure about the shoes). Most people who leave large law firms, with the notable exception of finance folks, end up with lower incomes in their new lines of work. But many refugees of Biglaw report higher job satisfaction, as well as overall happiness.
While the relationship between women, shoes and happiness remains as mystifying now as ever, the point that money brings diminishing returns on the happy scale, with the notable exception of finance folks, is no shock. What is surprising is that $75,000 is the magic number.
Aside from Orange County Public Defenders, who are paid extremely well for their services, as well as provided with plenty of time at the wine bar to sip their Chardonnay while thinking about cases, the really problematic aspect of this magic number is that making it isn’t really that hard a feat for civil lawyers. Biglaw or small, most lawyer jobs pay sufficiently well to hit the mark. If you’re still not happy, then take it up with Professor Kahneman. While the magic number may be sufficient in the wee years of a lawyer’s career, I can’t see it being enough to bring a smile to anyone’s face for very long.
Yet criminal defense lawyers in private practice aren’t bringing in enough loot to make the cut. No, not you n00bs, but lawyers out there with 10 or more years under their belt, surviving on assigned work and the occasional walk-in felony. You’ve got rent to pay and employees who expect a check at the end of the week. The telephone company gets more of your revenue than your children, but won’t wait the three months it takes for the government to end its float on your submitted bills. Your clients bitch that you’re too expensive and your spouse bitches that you’re too cheap.
According to this unsourced eHow post, the median income for a criminal “justice” lawyer in 2006 was $100,000. Whether this is accurate now, or was ever accurate, I dunno, but from what I hear on the streets of Manhattan, there seems to be an awful lot of good lawyers who aren’t coming anywhere near that number, despite Herculean efforts to do so. Civil lawyers fight over the banality of money. Criminal defense lawyers fight over human lives. Clearly, the latter isn’t as societally significant, or the roles would be reversed.
For a long time now, I’ve worried that the bulk of the criminal defense bar survives on the largesse of the government, and doesn’t survive all that well. The ramifications of this are dire; Should the government, say in a fit of belt tightening, decide that criminal defense lawyers are living way too well and could do fine on a fraction of what they’re being paid now, they could pull the plug on the flow of money and starve the criminal defense bar out of existence. Sure, it would make it difficult for a week or two for cases to proceed when there’s no one to stand to the side of defendants, but I’ve little doubt that a few stout souls will show up to plead a hundred defendants guilty before lunch so the wheels of justice don’t grind to a halt.
What is it about criminal defense that puts the group at what appears to be a perpetual financial disadvantage to civil lawyers? To find their happy place, civil lawyers take a pay cut. To meet that magic number, criminal defense lawyers need to double their revenue. Lat’s female Biglaw refugee bemoans her inability to go crazy in the Bloomies shoe department. Criminal defense lawyers go crazy trying to cover their nut and feed their kids.
While the magic $75,000 number strikes me as insufficient to meet the necessities of life for most lawyers, the shortfall is most stark for criminal defense lawyers who have no one to stuff their pay envelope every other Friday. Seriously, what are we doing so horribly wrong that so many criminal defense lawyers can’t make the numbers that they need to find happiness?

