827 sats \ 4 replies \ @freetx 6 Mar \ on: Low Time Preference When You Don’t Have Much Time Left mostly_harmless
HA! Wow does this resonate.
I'm probably a decade younger than you, but my parents were Silent Generation (born during Great Depression). My moms first memory was seeing her mother warm up a cup milk over a candle in a no-electricity boarding house they lived in.
Like many of that generation, they were big savers. Somehow (and I dont know how), they managed to save enough to fund a nice retirement including a home near a lake. Us kids were inculcated with their beliefs about money... we were constantly forced to think about "the value of X" - forced to do in-depth analysis of any potential purchase against a myriad of variables (do you really need that? can't you make do with X? is it better deal to purchase this instead? etc)
My lifestyle is a reflection of that. I'm driving a 20 yr old Toyota right now....have a iPhone 11, etc....even tho I have more than enough to enjoy all the latest and greatest. The fact remains that "saving / low time-preference" is so deeply built in me that I can't help but view the world in this way.
I often think about the idea that for the past 40-50 years there has been a systemic bias against savers, as slow fiat collapse induced consumption.....I think about how the emergence of bitcoin being sort of a environmental change in which "savers" were suddenly rewarded. Almost as if it was natural counterbalance. A natural selection process of unwinding the current system into a new system. One in which people like us were uniquely prepared to engage....
My Toyota is only 18! Our upbringings are so similar. The common denominator is the Great Depression, I guess. I always had to justify every purchase. In my family there was plenty of Italian Catholic guilt tossed in too. My grandparents' childhoods in southern Italy were pretty rough.
for the past 40-50 years there has been a systemic bias against savers
GDP's formula is:
GDP = C + G + I + NX
C = Consumption
G = Total government spending
I = Investment
NX = Net exports
There are no savings here, only spending. Even war will contribute to economy with this formula.
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