TIME PREFERENCE (IMPATIENCE)

the preference depends on the size, time shape, and riskof the income; but the particular rates correspondingto a particular income will be entirely different in thetwo cases. Therefore, the degree of impatience, in general,will tend to be higher in a community consisting of reck-less individuals than in one consisting of the oppositetype.

(2) Self-control, though distinct from foresight, is usu-ally associated with it and has very similar effects. Fore-sight has to do with thinking; self-control, with willing.Though a weak will usually goes with a weak intellect,this is not necessarily so, nor always. The effect of a weakwill is similar to the effect of inferior foresight. Like thoseworkingmen who, before prohibition, could not resist thelure of the saloon on the way home Saturday night, manypersons cannot deny themselves a present indulgence,even when they know what the consequences will be.Others, on the contrary, have no difficulty in stintingthemselves in the face of all temptations.

(3) The third characteristic of human nature whichneeds to be considered is the tendency to follow groovesof habit. The influence of habit may be in either direc-tion. Rich men’s sons, accustomed to the enjoyment of alarge income, are likely to put a higher valuation onpresent compared with future income than would personspossessing the same income but brought up under differ-ent conditions. When those habituated to luxury suffer areverse of fortune they often find it harder to live mod-erately than do those of equal means who have riseninstead of fallen in the economic scale; and this will betrue even if foresight and self-control are inherently thesame in the two cases. The former, brought up in the lapof luxury, will be more likely to be the prodigal son,

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