Economy, Society, and History

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4. Time Preference, Capital, Technology, and Economic Growth

Economy Society and History

Tags Money and BanksCapital and Interest TheoryMoney and Banking

09/03/2004Hans-Hermann Hoppe

The theory of time preference, capital, technology and economic growth will be viewed through both theoretical and historical elements. People have a preference for satisfaction earlier as compared to satisfaction later. Capital goods allow greater production, but this requires saving now, not consuming now.

Humans are constrained by time preference. Our interest rate is always higher than zero. Little children have very high time preferences. They don’t want to wait, they want things now. Populations have become more hedonistic and childlike in the current century, compared to earlier.

Capital needs to be preserved. Economic growth requires strong property rights to encourage people to save and invest. Sustaining large populations of people requires economic growth through capital goods and innovation. Taxes and debt destroy civilizations.

Lecture 4 of 10 from Hans-Hermann Hoppe's Economy, Society, and History.



Contact Hans-Hermann Hoppe

Hans-Hermann Hoppe is an Austrian school economist and libertarian/anarcho-capitalist philosopher. He is the founder and president of The Property and Freedom Society.