Long Term vs Short Term

The concept of time preference is crucial for understanding the economy, politics, and morality. If you have a high time preference, you are a short-term thinker, and if you have a low time preference, you are a long-term thinker.

Overcoming the limitations on long-term thinking is the key to economic growth, and short-term thinking is the cause of economic decline.An insight from Austrian economics is that there is an optimal time horizon. Long-term is not always better and short-term is not always worse.

long=1average=0.5
short=0
Y∈(0,+1)

If you are ... year old ... and you think there is ...% likelihood that the average life expectancy at the year ... ... ..., then you have to think in (Y) term at ...% rate.

number
male, female
(0,100)
number
is, will be
number
(0,100)