If a society's rate of time preference increases, as may have occurred in the United States during the 1970s, then, ceteris paribus, per capita

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A society's rate of time preference reflects how much they value present consumption over future consumption. An increase in the rate of time preference would mean that people value present consumption even more highly, which would lead to a decrease in private savings since people would be more willing to spend money now instead of saving it for the future. This would also lead to a decrease in personal consumption, as people may have to cut back on their current spending to compensate for the lack of savings.

If a Society's Rate of Time Preference Increases, as May