Income, the Capital Market, & the Wealth of Nations > This Week in Economics

Alicia’s philosophy of life is summed up by the proverb “A penny saved is a penny earned.” She plans and saves for the future. In contrast, Mike’s view is “Life is uncertain; eat dessert first.” Mike wants as much as possible now.
(a) Who has the highest rate of time preference?
(b) Do people like Alicia benefit from the presence of people like Mike?
(c) Do people like Mike benefit from the presence of people like Alicia? Explain
(d) Which of these philosophies do you identify the most with? If neither note
what is your fiscal mantra? Explain your answer.