An interesting argument against the Welfare State by Chris Dillow

This suggests money might buy happiness because of what it represents - that we have worked hard and saved hard - rather than because of what it buys.

So if you want to increase happiness you should not be handing people money. You should not be setting up the marginal tax rates to make work unattractive, you should be doing everything to get a job because even if the cash result is the same the dignity of work would lead to a greater net happiness.