Paradox of Thrift

Paradox of Thrift

by Hannah Suvar -
Number of replies: 1

The paradox of thrift states that because spending is good saving must be bad. This however is looked at with a black and white lens. Saving is a good thing, in fact that savings can be put into emergency funds and or towards larger purchases one wants to make later on in life. If the whole of society one day decided to stop spending money and every ounce of their pay check goes to savings, the world would still operate. People would find other things to spend other than money, such as services, goods, and or ideas. Saving is a grey area, not something that should be looked at with a black and white lens.

In reply to Hannah Suvar

Re: Paradox of Thrift

by Karlee Kinnison -
You made a good point that for saving and spending neither are inherently bad, or always good. While the paradox of thrift claims that more people saving money is worse for the economy, money saved does not just disappear, instead it can be invested and contribute to economic growth. Good job!!
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