Time, Money and Bandwidth

by Venkat on June 16, 2014

The NYT has an interesting piece on the psychology of poverty, No Money, No Time:

My experience is the time equivalent of a high-interest loan cycle, except instead of money, I borrow time. But this kind of borrowing comes with an interest rate of its own: By focusing on one immediate deadline, I neglect not only future deadlines but the mundane tasks of daily life that would normally take up next to no time or mental energy. It’s the same type of problem poor people encounter every day, multiple times: The demands of the moment override the demands of the future, making that future harder to reach.

When we think of poverty, we tend to think about money in isolation: How much does she earn? Is that above or below the poverty line? But the financial part of the equation may not be the single most important factor. “The biggest mistake we make about scarcity,” Sendhil Mullainathan, an economist at Harvard who is a co-author of the book “Scarcity: Why Having Too Little Means So Much,” tells me, “is we view it as a physical phenomenon. It’s not.”

“There are three types of poverty,” he says. “There’s money poverty, there’s time poverty, and there’s bandwidth poverty.” The first is the type we typically associate with the word. The second occurs when the time debt of the sort I incurred starts to pile up.

Worthwhile perspective on time, decision-making and scarcity of cognitive resources. Similar in spirit to the research on decision fatigue I reblogged a while back.

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