Discounting the Future

Abstract

This chapter analyses the political, environmental, and human implications of acts of discounting. Discounting is an economic instrument used by companies and policymakers to make the future commensurate with the present. This chapter argues that discounting is a political technology: it embeds debatable assumptions about value and the future, and it produces tangible effects in an expanding range of empirical domains. Drawing on examples from the history of discounting (capital budgeting, forest management, environmental regulation, and pharmaceutical research and development), the chapter discusses four of its political qualities. First, discounting equips collective decisions about the allocation of resources; second, it shapes the characteristics of future entities; third, it is an instrument for governing behaviour that guides decision-making in a myriad of places and instances; and fourth, it problematizes the very separation of the present and the future.