“Hope” Is The Thing
With Feathers
“Hope” is the thing
with feathers
That perches in the
soul
And sings the tune
without the words
And never stops - at
all
Hope is the belief
that there is a future.
As I said in an earlier blog
post , https://dbeagan.blogspot.com/2022/07/faith.html,
the three biblical virtues are Faith, Hope, and Love, and the greatest was
claimed to be Love. I previously made a pitch for Faith, trust, because without
trust, you may not accept Love. I also want to make a pitch for Hope in the
future, because without it there is no point to Love.
I have a special fondness for
Hope. As a native Rhode Islander, I know that Hope not only is the shortest American State
motto, but in the Greek myth, Pandora opened the chest which released evil into
the world, but remaining in the chest was Hope. Hope is a belief that there is
a future. And it is the future of the group, not oneself. Old men plant trees
that won’t bloom until long after they are gone because their hope is for the
group, not themselves.
The future does not have the
same value as today, even if it is not zero. “A bird in hand is worth two in the
bush,” etc. Requiring a profit is merely expressing that the future is worth less
than the present. If you say that the future has a value of 0.91 of the present,
then this is consistent with saying that you expect a 10% profit.
A problem with valuing the
future is that we also know that as individuals we have a limited life. But the
value of the future should not depend on our age. A 5-year old toddler, thinks
that their next birthday is a long way off because each birthday is 1/5 of
their life. They do not think of how many birthdays they will experience. A 20-year
old’s next birthday is 1/20 of their
life but they might reasonably expect that it is merely one of 60 more that
they will experience. A 70 year old's next birthday is only 1/70 of their life,
but it is only one of 10 more that they might expect to have. However the group
may celebrate your birthday long after you have departed. Is the next birthday “A
long way off” as a toddler might think, or
“Not so far away, but only a few more of
them” as the elderly like to think.
|
Self
|
Self
|
Group
|
Self
|
Group
|
Age in years
|
5
|
20
|
20
|
70
|
70
|
Expected number of birthdays to come
|
75
|
60
|
60
|
10
|
10
|
Value of next birthdays based on age
|
0.83
|
0.95
|
0.95
|
0.99
|
0.99
|
If only your life matters
|
.94
|
0.75
|
1.00
|
0.125
|
1.00
|
Effective net value of next birthday
|
0.78
|
0.71
|
0.95
|
0.125
|
0.99
|
Implied Interest Rate for Future
|
29%
|
40%
|
5%
|
700%
|
1%
|
A toddler has not yet been civilized
and thinks only of themselves, not any group.
The elderly thinking of the group, might think that the future has the same value as the present and ignore the fact
that they only have a limited number of birthdays in the future. This is bad,
since there are more future days than the present day and this leads to a belief that the future is worth more than the present. The selfish elderly might think since they
only have a few more birthdays left, “Après moi, le déluge”. This would be
equally wrong since it says the future has no value. It seems like a future of 0.9 times the present,
which is more consistent with a selfish 20-year old might be a good value for the
future. As long as the future has a value greater
than zero, then we do have Hope.