Interest rate Quote by Steven Pinker
““There is an optimum rate of discounting the future—mathematically, an optimum interest rate—which depends on how long you expect to live, how likely you will get back what you saved, how long you can stretch out the value of a resource, and how much you would enjoy it at different points in your life (for example, when you’re vigorous or frail). “Eat, drink, and be merry, for tomorrow we die” is a completely rational allocation if we are sure we are going to die tomorrow. What is not rational is to eat and drink as if there’s no tomorrow when there really is a tomorrow. To be overly self-indulgent, to lack self-control, is to devalue our future selves too much, or equivalently, to demand too high an interest rate before we deprive our current selves for the benefit of our future selves. No plausible interest rate would make the pleasure in smoking for a twenty-year-old self outweigh the pain of cancer for her fifty-year-old self.””
About This Quote
Source Book: The Better Angels of Our Nature by Steven Pinker, 2011
We should balance present enjoyment with future wellbeing, using rational discount rates based on lifespan and health expectations.
In simple terms: Balance now and later wisely.
Key Takeaway
Consider long‑term consequences before indulgence.
Themes
self‑control
future planning
intertemporal choice
health
economics
Mood
reflective
analytical
cautious
Type
philosophical
advisory
When to use this quote
- personal finance
- health decisions
- career planning
- retirement saving
- addiction avoidance
Key Concepts
discounting
interest rates
rationality
intertemporal trade‑offs
Questions to Reflect On
- How do you value future health versus present pleasure?
- What factors influence your personal discount rate?
A Different Perspective
Assumes people can accurately estimate future health and lifespan, which is often uncertain.
