How economics will enable people to live in present?
Living in present is key to me. I didn’t know ,How difficult it is to really live in present until I have tried to do it knowingly? We thrive on the past memories and future expectations. A walk down the road with loving partner and a subtle note in the shostakovich waltz can make someone live in present more than anything else but my question is “can economics do it?”
Economics as a field of study primarily concerns itself with the allocation of scarce resources among competing ends. It can influence people’s behavior and decision-making by shaping their incentives and opportunities. Here are some current ways in which economics is making people live in the present
Discounting the future: In economics, people are said to discount the future, which means they assign lower value to future benefits and costs compared to present ones. This concept can encourage people to consume and spend money in the present rather than saving it for the future.
High interest rates: High interest rates on loans and credit cards can incentivize people to spend money in the present rather than saving it for the future. When the cost of borrowing is high, people may be less likely to invest in long-term savings or investments.
Inflation: Inflation is the rate at which the general level of prices for goods and services is increasing. High inflation can encourage people to spend their money in the present rather than saving it for the future. This is because the value of money decreases over time due to inflation, so people may want to use their money before it loses its value.
Advertising: Advertising can create a sense of urgency around buying and consuming products, which can encourage people to live in the present rather than saving for the future. This is especially true when advertisements promote instant gratification, such as “buy now, pay later” schemes.
Consumer culture: Economics can also influence people’s behavior by shaping the cultural norms around spending and consumption. In many societies, there is a strong emphasis on consumerism and material possessions, which can encourage people to prioritize present consumption over future savings.
It is worth noting that while economics can incentivize people to live in the present, it is ultimately up to individuals to make their own decisions about how to manage their resources. It is important to strike a balance between present and future needs and to make informed decisions that take into account both short-term and long-term considerations.It’s difficult to predict exactly how economics in future will shape people’s behavior and decision-making, as it will depend on a wide range of factors such as technological advancements, changes in societal norms, and global economic and political developments. However, there are some potential ways in which economics could make people live in the present in future:
Environmental concerns: As the impact of climate change and other environmental challenges become increasingly apparent, economics may incentivize people to live in the present by emphasizing the importance of reducing emissions and conserving resources. For example, governments and businesses may offer incentives for individuals who adopt sustainable practices, such as using renewable energy sources or reducing their carbon footprint.
Shifts in work and leisure: The rise of automation and artificial intelligence may change the nature of work and leisure in the future, potentially leading to more flexible and fluid lifestyles. This could encourage people to focus on present experiences and opportunities, rather than long-term planning.
Digital economies: As digital technologies continue to evolve, economics may increasingly prioritize the value of digital assets and currencies over physical ones. This could encourage people to live in the present by promoting more immediate transactions and experiences, such as using digital payment platforms or participating in virtual economies.
Social welfare policies: Governments may implement social welfare policies that prioritize the needs of present generations over future ones, such as providing universal basic income or expanding access to healthcare and education. While this could lead to a more present-focused society, it may also result in a widening gap between the haves and have-nots, as some individuals may still struggle to meet their basic needs.
Psychological factors: As research in psychology and behavioral economics continues to develop, economists may gain a greater understanding of how human decision-making is shaped by cognitive biases and emotional factors. This could lead to new approaches for incentivizing present-focused behavior, such as leveraging social influence or using personalized nudges to encourage people to take immediate action.
It’s important to note that living in the present is not inherently positive or negative; it depends on the specific circumstances and individual values. It’s also important to consider the potential trade-offs of present-focused behavior, such as reduced savings and investments for the future. Ultimately, the role of economics in shaping individual behavior will depend on a complex interplay of factors that are difficult to predict with certainty.
