Dear Friends,
It seems to me, we teach our children that the ability to delay gratification is the single biggest predictor of success, yet as a civilization we have zero ability to delay gratification. This is illustrated by the astonishing national debt of every nation on Earth. There have been many empirical studies finding that the ability to delay gratification is paramount in living a successful life. Not simply in wealth but in all aspects of life. While the ability to delay gratification isn’t the only predictor of success, it’s at the top of the list. Moreover, others like diligence, education, and sticktuitiveness all fall out of delayed gratification. The Hermetic principle applies here, as it is in the large, so shall it be in the small. In this case, that which benefits the small also benefits the large.
The individual who is able to delay gratification can set aside money for a rainy day, withhold eating until safe food is available, and thus are tough. A car repair isn’t the end of the world, cholera doesn’t lay them down, and other problems that always arise can be dealt with. This is because such people sacrifice immediate wants for future needs. In doing so, their future needs are met such that they can deal with normal day-to-day disasters. Profligate people who spend not only what they earned today, but borrow against what they will earn tomorrow are in constant disaster mode. This drives their stress up, and as such they don’t live long. How can one deal with the day-to-day disasters with no savings, and debt up to one’s eyeballs? They can’t. Life is a rolling disaster.
Nations that are able to delay gratification set money aside for a rainy day, withhold from enacting stupid regulations, and so are tough. An economic downturn doesn’t cause general starvation, an outbreak of disease doesn’t shut down the whole system, and other normal issues are easily dealt with. Such nations sacrifice immediate wants for future needs. In these nations the day-to-day disasters are easily met. Nations that borrow, spend, and regulate are in constant disaster mode. In these nations the day-to-day disasters pile up until the whole institution collapses. How can a nation contend with a real problem when it is swamped by the normal ones? It can’t. Such a nation will borrow and spend until there is nothing left to borrow. At that point it will drag the whole society down with it.
People and nations that are unable to delay gratification are always blaming someone else, or the day-to-day disasters that visit everyone. Mind-boggling debt makes it hard to fix the car, or replace a bridge. Meanwhile, the savers, both personal and national, don’t even blink when a car repair comes in, or a bridge needs replacing. So the repair or replacement gets done with quickness and quality. On the other hand, the profligate spenders’ cars will be jalopies, held together with baling twine and rubber bands… as the profligate nation’s roads and bridges become ticking time bombs. The guy with loads of gambling debt will complain how the world hates him. So he robs a liquor store. The nation that wallows in national debt will complain they need more revenue. So they start a war.
What this means is that if you want to have a low-stress life that’s free from constant unsolvable problems, learn to delay gratification. Teach your kids this most valuable of skills. The same applies to the nation you live in. A nation that delays gratification so it has a national surplus, not debt, is more resilient to shocks. While it’s great to have a Lamborghini, if you can’t afford one, it’s best not to buy one. The same applies to nations. While that island is rich and would make great plunder, if you can’t afford the war, it’s best not to start it. Moreover, if the nation you live in is drowning in national debt, that nation is on the way to a mortal event. This is because as the day-to-day disasters are unmet, the system becomes ever less stable until some event, maybe small, destroys it once and for all.
Sincerely,
John Pepin
