What are the general things that make a society lower its time preference, thus increasing savings, thus lowering interest rates and thus raising investment? In other words, what makes people not want to spend their money? Poor investments, resulting in falling businesses resulting in lower GDP and employment would appear to one. You could go a step back with poor investments that were rooted in from an artificially low interest rates, from fractional reserve banking, and/or increases in the money supply. Tax increases could be an another one. New competition resulting in fallen, or contracting business/businesses would temporarily be a factor. A new industry replacing an old one would also temporarily be a factor. Technological advances have the potential to temporarily be a factor, with lower employment. Maybe a rise in the value of the dollar could increase savings because less dollars are needed. (but I think Rothbard said that isn’t necessarily the case) Economic growth could increase savings, but at the same time it increases spending. (I’m not sure about that one. It looks like it could either way) Can anyone name some more things that lower time preference, or correct me if the factors I listed so far are inaccurate?
The instances that i can think of that would lower time preference. High interest rates on savings. Scheduled future sales tax reductions. Expectations of increases in product value ie same price for a product but better quality, newer model etc. Expectations of future price decreases. in theory, currency deflation, ie money being worth more over time. But these are subjective and depend on individual own value preference.
Thank you and great answer.