Is the economic crisis still making Americans unhappy?

In a new paper, Angus Deaton says maybe not so much (pdf).  Happiness surveys show a big negative effect from the downturn in 2008, but most of it has since evaporated.  You can conclude that a) things really are better, b) they are not focusing enough on the long-term unemployed, c) I shouldn’t trust happiness surveys, d) this explains why we are still headed off a cliff, or some combination of the above.  For the pointer I thank Eric Barker.