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Sharpen Your Thinking Skills

August 20, 2022 By George Hutton Last update: August 20, 2022

Long Game

https://loopvids.s3.amazonaws.com/2022/22Aug20_Post.mp3
There’s an interesting theory posed by an economist.
 
A couple of economists actually.
 
The first compared life before agriculture to life after agriculture.
 
When you are a hunter gatherer, you are always living in the now.
 
If you are hungry, you go out and kill something now and eat it.
 
But with the discovery of agriculture, that all changed.
 
The stuff you ate today was the result of what you did three months ago.
 
The stuff you were doing today would affect your life in three months.
 
The idea of living only for now had to be forgotten.
 
This changed our perception of time.
 

Now Vs. Later

We were forced to examine how our actions NOW would affect our lives with a couple of months.
 
Cavemen and women never needed to do this.
 
They just followed the migrating animals and killed and ate them whenever the could.
 
The other economist looked at interest rates in England leading up to the Industrial Revolution.
 
Interest rates are closely related to something called “time preference.”
 
The more you can “feel” how today’s actions will effect your life in a year, the lower your time preference will be.
 
For example, imagine if you truly had ZERO idea what life, or the world, would be like in a week.
 
This would give you a very high time preference.
 
You would prefer to spend money NOW much more than keep it for a couple of months.
 
On the flip side, imagine having a very clear idea of what your life would be like in a year.
 
This would make it much easier to see how your actions today (exercise, study, daily habits) would impact your life in a year.
 

Evolution Of Society

Generally speaking the lower the time preference, the easier it is to compare actions today vs. life in a year, the lower the interest rates of a society would be.
 
And guess what?
 
For the few hundred years leading up to the Industrial Revolution, interest rates were slowly falling.
 
Meaning that people were better and better at comparing actions today vs. life in a year.
 
Which makes sense.
 
If you don’t really care what happens to you in a couple of weeks, you’ll live a pretty “unhealthy” life.
 
You won’t exercise, you’ll eat a bunch of junk food, you’ll spend money as soon as you get it, and self improvement doesn’t make any sense.
 
On the other hand if you really do care what life will be like in a year, you’ll live a very “healthy” life.
 
You’ll be more likely to exercise, eat right, get decent sleep, and do something every day to improve your skills.
 
This is how you build your brain, just like a muscle, so you can see further and further forward in time.
 
Let all the other goofs run around worried about chasing “now” pleasure.
 
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Filed Under: Authority, Game, Human Nature, Hunters and Gatherers, Interpersonal Skills, Money Intelligence, Thinking Skills, Time Preference Tagged With: Delayed Gratification, Industrial Revolution, Interest Rates, Long Game, Mental Skills, Planning, Thinking, Time Preference

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