Hal Finney wrote:
>Let me try to boil it down to just a couple of sentences, which
>summarize the argument I have been trying to make.
>Making changes to discount rates is motivated by satisfying people's
>preferences. However, making this change will have side effects.
>This could lead to people having fewer of their preferences satisfied.
>Does that make sense?
I don't think it makes sense to talk about side effects of changing
discount rates, because that isn't a specific policy which can have
such effects. You could talk about the side effects of changing
interest rates, or rates of taxation on capital, or subsidizing
education, etc. But social discount rates are just a feature of
social preferences - and preferences don't have side effects, actions
do.
Robin Hanson rhanson@gmu.edu http://hanson.gmu.edu
Asst. Prof. Economics, George Mason University
MSN 1D3, Carow Hall, Fairfax VA 22030-4444
703-993-2326 FAX: 703-993-2323
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