Comments on: Comments on Comments #13 http://www.nothirdsolution.com/2008/04/17/comments-on-comments-13/ Blogging about liberty, anarchy, economics and politics Wed, 28 Jul 2010 17:18:45 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Zach (TheCoast) http://www.nothirdsolution.com/2008/04/17/comments-on-comments-13/comment-page-1/#comment-3871 Zach (TheCoast) Tue, 29 Apr 2008 19:08:12 +0000 http://nothirdsolution.com/2008/04/17/comments-on-comments-13/#comment-3871 Just to help you on your perpetuity calculation. the present value of an infinite payment is simply the payment divided by the interest rate. So you in your example, the present value of infinite payments of $1 at a 5% interest rate is $20 ($1/.05). That being said, as far as the government not having a discount rate isn't quite true. The fed rate (the rate in which the loan out money to banks and I would assume other countries) is basically the discount rate and you could just take the 200 year average as a basic assumption of their future fed rate if it came down to it. Just to help you on your perpetuity calculation. the present value of an infinite payment is simply the payment divided by the interest rate. So you in your example, the present value of infinite payments of $1 at a 5% interest rate is $20 ($1/.05).

That being said, as far as the government not having a discount rate isn’t quite true. The fed rate (the rate in which the loan out money to banks and I would assume other countries) is basically the discount rate and you could just take the 200 year average as a basic assumption of their future fed rate if it came down to it.

]]> By: olly http://www.nothirdsolution.com/2008/04/17/comments-on-comments-13/comment-page-1/#comment-3824 olly Thu, 17 Apr 2008 16:45:37 +0000 http://nothirdsolution.com/2008/04/17/comments-on-comments-13/#comment-3824 David -- just to be clear, I wasn't espousing liberalism, or saying that Seattle should live up to "liberalism" -- rather finding it ironic that what most people perceive liberalism to be (incorrectly), i.e. people see liberals as PROMOTING freedom, is what drives Seattle to do things like ban lap dances, have heinous noise pollution rules that drive clubs out of business, ban smoking to drive some bars out of business, etc. Liberal, Conservative, it's all the same results based on different rhetoric -- Liberals restrict freedom in the name of "the greater good" "tolerance" and "political correctness" -- conservatives restrict freedom in the name of "religion" "family values" and "protecting our traditional cultural values". In the end, whether you take my freedom and smile, or take my freedom and lecture me, you're still the bastard that took my freedom. -olly David — just to be clear, I wasn’t espousing liberalism, or saying that Seattle should live up to “liberalism” — rather finding it ironic that what most people perceive liberalism to be (incorrectly), i.e. people see liberals as PROMOTING freedom, is what drives Seattle to do things like ban lap dances, have heinous noise pollution rules that drive clubs out of business, ban smoking to drive some bars out of business, etc.

Liberal, Conservative, it’s all the same results based on different rhetoric — Liberals restrict freedom in the name of “the greater good” “tolerance” and “political correctness” — conservatives restrict freedom in the name of “religion” “family values” and “protecting our traditional cultural values”.

In the end, whether you take my freedom and smile, or take my freedom and lecture me, you’re still the bastard that took my freedom.

-olly

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