The paradox of thrift is the idea that if you are saving money as an individual, you are doing harm to the economy. The economy needs money to grow and live and if you are saving money instead of spending your money which is someone else's income then you are hurting the economy. It suggests that saving is good for the individual, but as a whole it would harm society. It suggests that because people are saving more, companies aren't receiving as much of money and therefore cannot afford to hire as many people and pay them as much so it suggests that it would cause unemployment and lower wages if society as a whole decided to save more.
This is a good summary of the paradox of thrift. While it is true that when people save money they are holding back money from the economy that could be someone's income, that is assuming they are using cash. Most people save in the bank and those banks loan money out to business which actually helps the economy. Overall, this is a good summary.