Tag: Austrian school

Member Post

 

I love this. (My emphasis) JD: Given how entrenched the Fed is now after 100-odd years, what do you suggest instead of tinkering? Simply allow other forms of money to compete, to be used for settlement of payments and for taxes? What’s a practical way to reform our monetary system? Preview Open

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The Price of Your Time

 

shutterstock_102373678When I was a graduate student, lo these many years ago, my roommate was college physics classmate who had switched to economics in grad school. In our conversations he would frequently annoy me by asking, “What about the price of your time?” In those days, it seemed like nothing more than an irritating econ grad student tic.

With advancing age, or perhaps because of my increased respect for the discipline of economics, I’ve come to see the wisdom of my roommate’s emphasis on the overriding value of time. Time is the only resource that is fundamentally limited to us as individuals. We plan our lives with the knowledge that our time is limited. People use debt to finance purchases because no one wants to save for 30 years to buy a house or several years to buy a car. It’s important to get it now. Presidential elections are important because you can’t simply wait for eight years of Hillary or Bernie to blow over. Sure, the electorate may come to its senses some day and finally understand that socialism is a bankrupt ideology. It took about 70 years in Eastern Europe. I can’t wait for that long.

Now imagine that you could expect to live 1000 years. Postponing the purchase of a house for 30 years doesn’t seem onerous. In your 900-year career there will be plenty of time to try different occupations and make mistakes along the way. On the other hand, imagine you could only expect 30 years of life. No one would invest 15 or 20 of those years in education.