Time Preference and Survival Mode

Hundred dollar car note, two hundred rent
I get a check on Friday but it's already spent
--Huey Lewis and the News

Time preference is the value that you place on the here and now. High time preference means that you are very focused on the present. You will shift resources and consumption into the current period. You may even borrow from others to elevate your present well being.

Life threatening conditions are likely to elevate time preference. People facing serious illness, catastrophic financial loss, or a pointed gun will dedicate their energies toward now in order to elevate their chances of survival.

As people shift into survival mode, they will seek to marshal the resources necessary to get them through the present period--at the expense of preparing for a better future.