Your daily lesson in economic concepts comes courtesy of tiny North Korean dictator Kim Jong Il, who, according to reports, is dying of cancer.
He does look pretty gaunt in the latest pictures.
On the news the South Korea’s KOSPI fell over 3.5%. Why? Because with little left to look forward to, the menace to the north has no reason not to do something totally crazy, like drop a bomb on Seoul. At least if he thought he had a long time to live, he’d know there would be longterm consequences.
That’s the idea behind ‘time preference’. When people have no reason to think long term, bad things happen.
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