🌐 How can you build a civilization? | Time preference

What is time preference? What is high and low time preference? Why save and invest?
What are the conditions necessary for the investment to be possible? How can you build a civilization?
Learn Austrian Economics in a fun way!

LINKS

00:00 What is time preference?
02:12 High and low time preference
03:15 Why save and invest?
06:02 Conditions necessary for the investment to be possible
07:00 How can you build a civilization?

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Music on CC license:

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[wertywerrtyson]

Maybe beyond the scope of the video but one important thing not mentioned is that you need stability for the investments to pay off. If a storm destroys the boat, war bombs the factories or a revolution takes the factories from you then there is no incentive to save up. A stable society is crucial for there to be investment.

[miranda]

That ending was absolute perfect, top notch audio

[aadityas.]

Your videos are a gem, they teach real economics without going to business schools. Please make more videos we love them <3

[joshwilson]

​Ooh ooh! I get to hear my voice soon! Haha. Excited for the video, you guys give great insight. I've learned a lot about economics, and have learned to love Mises (lol), from working with you.

[PsychologyinTamil]

Hi your Videos are good. Just to help you out, use a low cut audio filter below 80 hz that will remove most of your noise problem.

[zblus]

lol the music and the devil's lettuce 😂 8:18

[austinbyrd]

Proper time preference requires people to to deter the consumption, acquisition, & utilization of land, labor, & capital in the present for them to be properly bidded off freely on the open market. Savings are usually lent out as well. Depositors, who aren't specialized in the efficient allocation of funds, tend to lend their money to other lenders. These lenders (banks) lend to productive ventures. They pay interest to the banks, & the banks pay interest to their lenders (the depositers).
If they're not lent & instead sit under a mattress, then all they've done is freed up land, labor, & capital onto the market & withdrawn monetary units. Since the ones with the most monetary units are demanded ventures, they accumulate more resources (in direct proportion to how demanded they are). Money is divisible. It's value can be split practically infinitely for ever more people, at a sustainable degree. People must compete for those resources & provide value to others. It's value as a currency is represented by the quality & quantity of the goods/services you can buy, & can buy at a later date.
This deflation increases people's purchasing power & encourages savings. It's healthy!

[berntengdahl]

Mises was obviously wrong in asserting that all improvement in material well being requires saving, for it can also be done by increasing working hours. That is, if I want more money in my bank account, I can increase my savings (i.e. reduce my consumption), or I can increase the amount of hours that I work. Both methods would work. It just blows my mind that Mises was not able to understand this.

[miranda]

Common why the weed dude has higher time preference 🤣

[neonschaf]

Why does investing follow to higher demand of work?

[MegaPartakias]

Excellent video, i enjoy your point of view! Could you provide us the name of the song that plays towards the end of the video? (at 7:54)

[jebremocampo]

If kids watched your videos, they would get way more educated than the public schools where it takes 30k a year to teach them. And still have hard time reading

[udescarta]

My god man 2 days of waiting time. Dont tease us with that beautiful thubnail and leave us like that

[marunio]

What's the name of the song at the end of the video? It sounds really good like dark ambient.

[DPPZ]

How does this system not exist in a contradiction? The investors create a culture of consumption, reducing the amount the average person saves, and then flood money into assets like stocks and housing, which further increase the cost of living, and therefore, the savings of those individuals. It seems like it's set up to favour only the original holders of wealth and the few that gain it under these new conditions. It's like they pull the ladder up just after they finish climbing.

[Anti-CornLawLeague]

Jeff Bezos may have had a high time preference because initially his parents had to bail Amazon out to the tune of $250, 000. Same with Elon Musk. He may have had a huge time preference, but his parents owned an emerald mine in Zambia. You often gotta win the birth lottery to be rich in this day and age.