--- title: "Meaning & Key Takeaway of: There is an optimum rate of discounting…" description: "\"“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 y..." image: "https://sms4smile.com/quotes/i/fb3/steven-pinker-526_interest-rate_there-is-an-optimum-rate-of-discounting_2351620.jpg" --- # There is an optimum rate of discounting the… ![“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…” quote by Steven Pinker](https://sms4smile.com/quotes/i/fb3/steven-pinker-526_interest-rate_there-is-an-optimum-rate-of-discounting_2351620.jpg) [Download](https://sms4smile.com/quotes/i/fb3/steven-pinker-526_interest-rate_there-is-an-optimum-rate-of-discounting_2351620.jpg) [Open image](https://sms4smile.com/quotes/i/fb3/steven-pinker-526_interest-rate_there-is-an-optimum-rate-of-discounting_2351620.jpg) > ““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.”” [Steven Pinker](https://sms4smile.com/quotes/author/steven-pinker/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. 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. ★ ★ ★ ★ ★ No ratings yet [Discounting](https://sms4smile.com/quotes/about/discounting-1244721/) [Discounting Future](https://sms4smile.com/quotes/about/discounting-future-2432053/) [Interest rate](https://sms4smile.com/quotes/about/interest-rate/) [Optimum Rate](https://sms4smile.com/quotes/about/optimum-rate-5726820/) [Rate Discounting](https://sms4smile.com/quotes/about/rate-discounting-5726819/) [Tomorrow Rational](https://sms4smile.com/quotes/about/tomorrow-rational-5726818/) ## Related quotes > [Of course, the discounting of future earnings should hurt all stocks. But it should hurt technology stocks more than others, because so many of…](https://sms4smile.com/quotes/alex-berenson/of-course-the-discounting-of-future-earnings-should-hurt-all-stocks/) [Alex Berenson](https://sms4smile.com/quotes/author/alex-berenson/) > [I don't really spend a lot of time discounting the things I'm doing in hopes that I could be doing something else.](https://sms4smile.com/quotes/fred-savage/i-don-t-really-spend-a-lot-of-time-discounting-the-things-i-m-doing/) [Fred Savage](https://sms4smile.com/quotes/author/fred-savage/) > [“When combined, the challenge to gain future perspective and the desire for immediate rewards sets us up for a range of problems. Economists call…](https://sms4smile.com/quotes/david-disalvo/when-combined-the-challenge-to-gain-future-perspective-and-the-desire/) [David DiSalvo](https://sms4smile.com/quotes/author/david-disalvo/) > [The discounting presumably is to be done for each period of time at that rate of interest which represents the alternative cost of employing…](https://sms4smile.com/quotes/kenneth-e-boulding/the-discounting-presumably-is-to-be-done-for-each-period-of-time-at/) [Kenneth E. Boulding](https://sms4smile.com/quotes/author/kenneth-e-boulding/) > [“Arthur’s program of discounting diamonds throughout his vast chain of”](https://sms4smile.com/quotes/clive-cussler/arthur-s-program-of-discounting-diamonds-throughout-his-vast-chain-of/) [Clive Cussler](https://sms4smile.com/quotes/author/clive-cussler/) > [“Not surprisingly, the father if market efficiency, Gene Farma, has a very clever way to avoid the pitfalls of hyperbolic discounting. When he's invited…](https://sms4smile.com/quotes/andrew-w-lo/not-surprisingly-the-father-if-market-efficiency-gene-farma-has-a/) [Andrew W. Lo](https://sms4smile.com/quotes/author/andrew-w-lo/) > [If we are forever yearning for more time, we are forever discounting what is offered.](https://sms4smile.com/quotes/julia-cameron/if-we-are-forever-yearning-for-more-time-we-are-forever-discounting/) [Julia Cameron](https://sms4smile.com/quotes/author/julia-cameron/) > [Despite Russia's move to raise interest rates this week, the value of the ruble has continued to crash. Russia's economy is so bad, Edward…](https://sms4smile.com/quotes/jimmy-fallon/despite-russia-s-move-to-raise-interest-rates-this-week-the-value-of/) [Jimmy Fallon](https://sms4smile.com/quotes/author/jimmy-fallon/) > [The fact that equities are being sold down, despite the lowest interest rates in recent history, simply means that the market doesn't see growth…](https://sms4smile.com/quotes/john-c-malone/the-fact-that-equities-are-being-sold-down-despite-the-lowest/) [John C. Malone](https://sms4smile.com/quotes/author/john-c-malone/) > [A lower interest rate doesn't make a debt go away.](https://sms4smile.com/quotes/dave-ramsey/a-lower-interest-rate-doesn-t-make-a-debt-go-away/) [Dave Ramsey](https://sms4smile.com/quotes/author/dave-ramsey/) > [The insurance companies do not refer to the key policy rate when they send their statements. We can only control that rate. Long-term interest…](https://sms4smile.com/quotes/mario-draghi/the-insurance-companies-do-not-refer-to-the-key-policy-rate-when-they/) [Mario Draghi](https://sms4smile.com/quotes/author/mario-draghi/) > [I think we have a bubble in the US in government bonds, because of the quantitative easing and the negative real interest rates, and…](https://sms4smile.com/quotes/peter-thiel/i-think-we-have-a-bubble-in-the-us-in-government-bonds-because-of-the/) [Peter Thiel](https://sms4smile.com/quotes/author/peter-thiel/) > [Why, just a couple of economic seasons ago, was idle cash considered an indication of bad management or lazy management? Because it meant that…](https://sms4smile.com/quotes/malcolm-forbes/why-just-a-couple-of-economic-seasons-ago-was-idle-cash-considered-an/) [Malcolm Forbes](https://sms4smile.com/quotes/author/malcolm-forbes/) > [At times of recession, running a budget deficit is highly desirable. Once the economy begins to recover, you have to balance the budget. But…](https://sms4smile.com/quotes/george-soros/at-times-of-recession-running-a-budget-deficit-is-highly-desirable/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [Right now we're concerned about budget. Right now we're concerned about the prospect of interest rate rise. We're concerned about government corruption, government handing…](https://sms4smile.com/quotes/amity-shlaes/right-now-we-re-concerned-about-budget-right-now-we-re-concerned/) [Amity Shlaes](https://sms4smile.com/quotes/author/amity-shlaes/) ## More by Steven Pinker > [Forcing modern speakers of English to not - whoops, not to split an infinitive because it isn't done in Latin makes about as much…](https://sms4smile.com/quotes/steven-pinker/forcing-modern-speakers-of-english-to-not-whoops-not-to-split-an/) [Steven Pinker](https://sms4smile.com/quotes/author/steven-pinker/) > [Consistent style prevents presentation from getting in the way of content.](https://sms4smile.com/quotes/steven-pinker/consistent-style-prevents-presentation-from-getting-in-the-way-of/) [Steven Pinker](https://sms4smile.com/quotes/author/steven-pinker/) > [The supposedly immaterial soul, we now know, can be bisected with a knife, altered by chemicals, started or stopped by electricity, and extinguished by…](https://sms4smile.com/quotes/steven-pinker/the-supposedly-immaterial-soul-we-now-know-can-be-bisected-with-a/) [Steven Pinker](https://sms4smile.com/quotes/author/steven-pinker/) > [I've never argued that humans are massively hot-wired. What I was trying to point out was that you can't understand how we learn unless…](https://sms4smile.com/quotes/steven-pinker/i-ve-never-argued-that-humans-are-massively-hot-wired-what-i-was/) [Steven Pinker](https://sms4smile.com/quotes/author/steven-pinker/) > [As many political writers have pointed out, commitment to political equality is not an empirical claim that people are clones.](https://sms4smile.com/quotes/steven-pinker/as-many-political-writers-have-pointed-out-commitment-to-political/) [Steven Pinker](https://sms4smile.com/quotes/author/steven-pinker/) > [Since violence is largely a male pastime, cultures that empower women tend to move away from the glorification of violence and are less likely…](https://sms4smile.com/quotes/steven-pinker/since-violence-is-largely-a-male-pastime-cultures-that-empower-women/) [Steven Pinker](https://sms4smile.com/quotes/author/steven-pinker/) > [When it comes to explaining human thought and behavior, the possibility that heredity plays any role at all still has the power to shock.…](https://sms4smile.com/quotes/steven-pinker/when-it-comes-to-explaining-human-thought-and-behavior-the/) [Steven Pinker](https://sms4smile.com/quotes/author/steven-pinker/) > [Morality is not just any old topic in psychology but close to our conception of the meaning of life. Moral goodness is what gives…](https://sms4smile.com/quotes/steven-pinker/morality-is-not-just-any-old-topic-in-psychology-but-close-to-our/) [Steven Pinker](https://sms4smile.com/quotes/author/steven-pinker/) > [“The biblical story of the binding of Isaac shows that human sacrifice was far from unthinkable in the 1st millennium BCE. The Israelites boasted…](https://sms4smile.com/quotes/steven-pinker/the-biblical-story-of-the-binding-of-isaac-shows-that-human-sacrifice/) [Steven Pinker](https://sms4smile.com/quotes/author/steven-pinker/) > [Part of the bargain of being alive is that one takes a chance at dying a premature or painful death, be it from violence,…](https://sms4smile.com/quotes/steven-pinker/part-of-the-bargain-of-being-alive-is-that-one-takes-a-chance-at/) [Steven Pinker](https://sms4smile.com/quotes/author/steven-pinker/) > [In fact, without a specification of a creature's goals, the very idea of intelligence is meaningless. A toadstool could be given a genius award…](https://sms4smile.com/quotes/steven-pinker/in-fact-without-a-specification-of-a-creature-s-goals-the-very-idea/) [Steven Pinker](https://sms4smile.com/quotes/author/steven-pinker/) > [“The obvious cure for the tragic shortcomings of human intuition in a high-tech world is education. And this offers priorities for educational policy: to…](https://sms4smile.com/quotes/steven-pinker/the-obvious-cure-for-the-tragic-shortcomings-of-human-intuition-in-a/) [Steven Pinker](https://sms4smile.com/quotes/author/steven-pinker/) > [If you look in general at people who live in anarchy, they have quite high rates of death from either homicide or warfare or…](https://sms4smile.com/quotes/steven-pinker/if-you-look-in-general-at-people-who-live-in-anarchy-they-have-quite/) [Steven Pinker](https://sms4smile.com/quotes/author/steven-pinker/) > [“In some eras, self-control defines the paragon of a decent person: a grown-up, a person of dignity, a lady or a gentleman, a mensch.…](https://sms4smile.com/quotes/steven-pinker/in-some-eras-self-control-defines-the-paragon-of-a-decent-person-a/) [Steven Pinker](https://sms4smile.com/quotes/author/steven-pinker/) > [Knowledge is a continuous fabric, in which ideas are connected to other ideas. Reason-free zones, in which people can assert arbitrary beliefs safe from…](https://sms4smile.com/quotes/steven-pinker/knowledge-is-a-continuous-fabric-in-which-ideas-are-connected-to/) [Steven Pinker](https://sms4smile.com/quotes/author/steven-pinker/) [Explore all 495 Steven Pinker quotes ](https://sms4smile.com/quotes/author/steven-pinker/) ## More Interest rate quotes > [Right now we're concerned about budget. Right now we're concerned about the prospect of interest rate rise. We're concerned about government corruption, government handing…](https://sms4smile.com/quotes/amity-shlaes/right-now-we-re-concerned-about-budget-right-now-we-re-concerned/) [Amity Shlaes](https://sms4smile.com/quotes/author/amity-shlaes/) > [At times of recession, running a budget deficit is highly desirable. Once the economy begins to recover, you have to balance the budget. But…](https://sms4smile.com/quotes/george-soros/at-times-of-recession-running-a-budget-deficit-is-highly-desirable/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [Why, just a couple of economic seasons ago, was idle cash considered an indication of bad management or lazy management? Because it meant that…](https://sms4smile.com/quotes/malcolm-forbes/why-just-a-couple-of-economic-seasons-ago-was-idle-cash-considered-an/) [Malcolm Forbes](https://sms4smile.com/quotes/author/malcolm-forbes/) > [I think we have a bubble in the US in government bonds, because of the quantitative easing and the negative real interest rates, and…](https://sms4smile.com/quotes/peter-thiel/i-think-we-have-a-bubble-in-the-us-in-government-bonds-because-of-the/) [Peter Thiel](https://sms4smile.com/quotes/author/peter-thiel/) > [The insurance companies do not refer to the key policy rate when they send their statements. We can only control that rate. Long-term interest…](https://sms4smile.com/quotes/mario-draghi/the-insurance-companies-do-not-refer-to-the-key-policy-rate-when-they/) [Mario Draghi](https://sms4smile.com/quotes/author/mario-draghi/) > [A lower interest rate doesn't make a debt go away.](https://sms4smile.com/quotes/dave-ramsey/a-lower-interest-rate-doesn-t-make-a-debt-go-away/) [Dave Ramsey](https://sms4smile.com/quotes/author/dave-ramsey/) > [The fact that equities are being sold down, despite the lowest interest rates in recent history, simply means that the market doesn't see growth…](https://sms4smile.com/quotes/john-c-malone/the-fact-that-equities-are-being-sold-down-despite-the-lowest/) [John C. Malone](https://sms4smile.com/quotes/author/john-c-malone/) > [Despite Russia's move to raise interest rates this week, the value of the ruble has continued to crash. Russia's economy is so bad, Edward…](https://sms4smile.com/quotes/jimmy-fallon/despite-russia-s-move-to-raise-interest-rates-this-week-the-value-of/) [Jimmy Fallon](https://sms4smile.com/quotes/author/jimmy-fallon/) > [Despite the deep reforms we are making, traders and speculators have forced interest rates on Greek bonds to record highs.](https://sms4smile.com/quotes/george-papandreou/despite-the-deep-reforms-we-are-making-traders-and-speculators-have/) [George Papandreou](https://sms4smile.com/quotes/author/george-papandreou/) > [And so the danger for the housing industry is if we see interest rates rise.](https://sms4smile.com/quotes/franklin-raines/and-so-the-danger-for-the-housing-industry-is-if-we-see-interest/) [Franklin Raines](https://sms4smile.com/quotes/author/franklin-raines/) > [A tight-money policy reinforces inequality in two ways. Its high interest rates disproportionately reward the rich, and the resulting unemployment disproportionately punishes the poor.](https://sms4smile.com/quotes/linda-mcquaig/a-tight-money-policy-reinforces-inequality-in-two-ways-its-high/) [Linda McQuaig](https://sms4smile.com/quotes/author/linda-mcquaig/) > [Maybe it was true, and being a girl could be about interest rates and skinny jeans, riding bikes and wearing pink. Not about any…](https://sms4smile.com/quotes/sarah-dessen/maybe-it-was-true-and-being-a-girl-could-be-about-interest-rates-and/) [Sarah Dessen](https://sms4smile.com/quotes/author/sarah-dessen/) > [...the Federal Reserve has the capacity to operate in domestic money markets to maintain interest rates at a level consistent with our economic goals](https://sms4smile.com/quotes/ben-bernanke/the-federal-reserve-has-the-capacity-to-operate-in-domestic-money/) [Ben Bernanke](https://sms4smile.com/quotes/author/ben-bernanke/) > [With all this consumer debt, business debt, government debt, smaller movements in interest rates have a magnified effect. a small movement can tip the…](https://sms4smile.com/quotes/bill-gross/with-all-this-consumer-debt-business-debt-government-debt-smaller/) [Bill Gross](https://sms4smile.com/quotes/author/bill-gross/) > [It isn't given to man to be able to run a financial institution where different interest-rate scenarios will prevail on all of that so…](https://sms4smile.com/quotes/warren-buffett/it-isn-t-given-to-man-to-be-able-to-run-a-financial-institution-where/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) [Browse all 221 Interest rate quotes ](https://sms4smile.com/quotes/about/interest-rate/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "“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.”", "creator": { "@type": "Person", "name": "Steven Pinker" }, "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "url": "https://sms4smile.com/quotes/steven-pinker/there-is-an-optimum-rate-of-discounting-the-future-mathematically-an/", "about": { "@type": "Thing", "name": "Interest rate" }, "@id": "https://sms4smile.com/quotes/steven-pinker/there-is-an-optimum-rate-of-discounting-the-future-mathematically-an/#quotation", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/fb3/steven-pinker-526_interest-rate_there-is-an-optimum-rate-of-discounting_2351620.jpg", "contentUrl": "https://sms4smile.com/quotes/i/fb3/steven-pinker-526_interest-rate_there-is-an-optimum-rate-of-discounting_2351620.jpg", "url": "https://sms4smile.com/quotes/i/fb3/steven-pinker-526_interest-rate_there-is-an-optimum-rate-of-discounting_2351620.jpg", "width": 1080, "height": 1080, "caption": "“There is an optimum rate of discounting the future—mathematically, an optimum interest rate—which depends on…” — Steven Pinker", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://sms4smile.com/" }, { "@type": "ListItem", "position": 2, "name": "Quotes", "item": "https://sms4smile.com/quotes/" }, { "@type": "ListItem", "position": 3, "name": "Steven Pinker", "item": "https://sms4smile.com/quotes/author/steven-pinker/" }, { "@type": "ListItem", "position": 4, "name": "“There is an optimum rate of...", "item": "https://sms4smile.com/quotes/steven-pinker/there-is-an-optimum-rate-of-discounting-the-future-mathematically-an/" } ], "@id": "https://sms4smile.com/quotes/steven-pinker/there-is-an-optimum-rate-of-discounting-the-future-mathematically-an/#breadcrumb" }, { "@type": "WebSite", "@id": "https://sms4smile.com/quotes/#website", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "publisher": { "@id": "https://sms4smile.com/quotes/#organization" } }, { "@type": "Organization", "@id": "https://sms4smile.com/quotes/#organization", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "logo": { "@type": "ImageObject", "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png", "width": 512, "height": 512 } } ] } ```