Meaning of paradox of thrift | Babel Free
Definitions
A paradox in which an increase in autonomous saving leads to a decrease in aggregate demand and thus a decrease in gross output which will in turn lower total saving.
Examples
“The worse things get⟳, meanwhile, the greater the tendency even for those who still feel⟳ secure in their jobs to hoard their cash for fear of what lies around the corner. This is the so-called paradox of thrift: that in a recession, people instinctively try⟳ to save⟳ their money instead of spending it, and thus inadvertently make⟳ things worse.”
CEFR level
C1
Advanced
This word is part of the CEFR C1 vocabulary — advanced level.
This word is part of the CEFR C1 vocabulary — advanced level.
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