Do you ever get the feeling that disposable cash in your hand is more risky than buying something that will last long? Some economists are suggesting that reasoning may be sound (original paper here).
Since cows will earn the cow herder money through milk, dung and eventually meat, it's no surprise they are seen as assets. But what makes the above articles special is that this is continued even though cows have negative returns for the herders after accounting for the cost of labor in herding, caring and maintaining the space of the cow.
So why do they continue buying cows?
Well, as the Economist article also suggests, it's because immediate desires outweigh the prospect of future benefits. It seems as though the cow will earn the herder good money later, so they put in the labor to buy, herd, care and maintain the cow.
Cow-caring can become easier, or the cost of cow-caring can be reduced, but the human/emotional pull of immediete desires will remain.
So perhaps it is sometimes "more human" to buy rather than save, and in some ways it is also economical. But do we always have the foresight to know how much it takes to maintain/use what we buy?
Since cows will earn the cow herder money through milk, dung and eventually meat, it's no surprise they are seen as assets. But what makes the above articles special is that this is continued even though cows have negative returns for the herders after accounting for the cost of labor in herding, caring and maintaining the space of the cow.
So why do they continue buying cows?
Well, as the Economist article also suggests, it's because immediate desires outweigh the prospect of future benefits. It seems as though the cow will earn the herder good money later, so they put in the labor to buy, herd, care and maintain the cow.
Cow-caring can become easier, or the cost of cow-caring can be reduced, but the human/emotional pull of immediete desires will remain.
So perhaps it is sometimes "more human" to buy rather than save, and in some ways it is also economical. But do we always have the foresight to know how much it takes to maintain/use what we buy?
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