Amazing how a 6 year old kid can understand a fundamental principle of economics whereas many adults cannot.
Future Goods are discounted over current good, and is the reason why there are rents, profits, and interests. I am willing to give up 102 dollars next month because I value 100 dollars right now more.
Of course the process of maturity tends to moderate such preferences as the region of the brain responsible for planning and consequences becomes fully developed.
Amazing how a 6 year old kid can understand a fundamental principle of economics whereas many adults cannot.
Future Goods are discounted over current good, and is the reason why there are rents, profits, and interests. I am willing to give up 102 dollars next month because I value 100 dollars right now more.
Of course the process of maturity tends to moderate such preferences as the region of the brain responsible for planning and consequences becomes fully developed.