Talk:Time preference

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So high preference means I want to spend my money now, right? Can this be explicitely mentioned in the article? --Tmh 09:34, 14 Oct 2004 (UTC)

Time preference (in reality as opposed to pinhead micro) can be positive or negative and it is mostly negative. People who save do so because they have a current surplus. If you spent all your current surplus on food you would become quite ill, and you really do have limited near term desires and/or you do recognize that one day you will be disabled by age and you will not be productive at that time (a deficit as opposed to a surplus). You know that when the winter comes you will need to have "saved" some stuff to eat. The reward that you anticipate for this saving is the delayed consumption and there is COST associated with the protection and preservation of that wich has been saved. You, the saver, should expect to pay these costs.

Therefore, the concept of paying "interest" to someone for "saving" money (the stuff that is created by government and banks out of thin air) is proposterous. You should be paying the bank and/or he government for looking after your savings.

--208.54.14.25 13:27, 30 November 2005 (UTC)

You have a negative time preference? Let's check.

I like your contribution to this article and willing to pay you $10 for it.

Would you like to receive the $10 check now or in twenty years?

Or a better example - to remove inflation effects:

I can give you a movie ticket (to a movie of your choice) now or in 50 years. Which you prefer?

Will somebody please check the second paragraph I added this in an attempt to explain time preference in a way that average Joe could understand, but not sure if my understanding is complete.

btw, 208.54.14.25 is wrong. Though it does cost money to save money, this cost is covered by the interest paid by those to whom the saved money is lent. This is true even under a full reserve banking system (which 208.54.14.25 clearly prefers) or at least for non-demand deposits therein ( for demand deposits as well provided the depositor understands that he/she will not be entitled to immediately withdraw his/her funds should an imbalance between the rate of deposits and the rate of withdrawals suddenly arise).

65.191.152.19 02:19, 10 December 2006 (UTC)