In my experience, building roads does lower corruption (and waste), but has no effect on happiness. What you're running into is the "riot factor" - once you exceed a certain number of cities, your citizens get less happy. There are three ways to deal with this:
1) Go republic/democratic and use luxuries and happy wonders/improvements to offset the extra unhappiness. Note that beyond some number of cities, two luxuries will convert a very unhappy citizen to a happy (not unhappy, not content, but happy) citizen.
2) Go Communist. No riot factor; garrison troops are doubly effective at quelling unrest.
3) Go Fundamentalist. No happiness worries whatsoever.
1) Go republic/democratic and use luxuries and happy wonders/improvements to offset the extra unhappiness. Note that beyond some number of cities, two luxuries will convert a very unhappy citizen to a happy (not unhappy, not content, but happy) citizen.
2) Go Communist. No riot factor; garrison troops are doubly effective at quelling unrest.
3) Go Fundamentalist. No happiness worries whatsoever.
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