Uploaded December 2020 | Updated September 2026, 1 week ago

---

This video explains time discounting and present value. I answer the question "Why is the future worth less?" and show how economists model that.

0:00 - Intro
0:27 - Thought Experiment
1:43 - Instantaneous Utility
2:11 - Present Value
4:03 - Why do people prefer cake today?
5:45 - Money
9:40 - Why is it Called Present Value?
10:02 - Formula

Video on Hyperbolic Discounting: youtube.com/watch?v=6p0J6gFwQ1c