Few economic decisions are as difficult as those involving the choice between present and future consumption. Some people, unable to place much faith in the future, happily borrow to fund present pleasures; others, with longer time horizons, are wary of such “fly now, pay later” policies. They fear that the required payments, when viewed up close, will be much more burdensome than they appear from a distance.
A version of this article appeared in the May 1982 issue of Harvard Business Review.
