Finance:Long-termism
From HandWiki
Short description: Focusing on long-term results at the expense of the short-term
Long-termism is the practice of sacrificing immediate results in favor of far-reaching ones.[1] It is the antonym of short-termism and an important concept in effective altruism.
The concept is based on the assumption that the welfare of every individual counts equally, and current actions are best judged by their effects on future individuals.[2]
Criticism
In practice, long-termism may lead to ignoring currently relevant issues, especially in extreme cases. For example, considering humanity's future in terms of the next 10,000 or 10 million years might lead to downplaying the short-term economic effects of climate change.[3]
References
- ↑ "Short-termism, long-termism, and regulatory focus in venture capitalists' investment decisions". https://www.tandfonline.com/doi/abs/10.1080/13691066.2012.666072.
- ↑ "Two Types of Long-Termism". https://talks.ox.ac.uk/talks/id/ede5a398-9b98-4269-a13f-3f2261ee6d2c/.
- ↑ "Against longtermism". https://aeon.co/essays/why-longtermism-is-the-worlds-most-dangerous-secular-credo.
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