XX – Eugen von Bohm-Bawerk, Part 2 – History of Economic Thought; Part 1

Bohm-Bawerk stated that present goods, as a rule, are worth more than future goods of equal quality and quantity and that there are three reasons for this.  The first reason is that, over time, the supply of goods is expected to grow and thus be worth less in the future.  The second is that people are incapable of correctly judging what the future will hold.  They are more likely to buy things based on the certain now rather than the uncertain future.  The third is that goods in possession now have more time to be invested in long processes, thus yielding a greater output sooner.

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