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A wide body of research in the field of happiness economics shows that individuals adapt to both prosperity and to adversity and return to their usual levels of happiness. In this paper we used novel methods and data to assess the effects of the deep economic crisis of 2008-2009 on well-being in the United States. We found, as expected, that the crisis had profound effects on happiness levels, as well as on individuals' assessments of their standards of living and of their future. These attitudes varied significantly depending on respondents' socioeconomic cohort, the industry that they were employed in, and their pre-existing states of mental and physical health. Our most notable finding, though, is a clear, U-shaped trend in reported happiness, with levels falling sharply with the onset of the crisis in mid-08 and trending downward until late March 2009 � around the time that stock markets stopped their free fall. From that point on, happiness levels increased, eventually surpassing the levels that they were in the pre-crisis period of early 2008. This general pattern supports our previous research suggesting that although people react negatively to unpleasant events, they adapt to unpleasant certainty better than they do to uncertainty.
