Turn America into a nation of savers Nov 10, 2009
This will be a good thing as it solves the troublesome "paradox of thrift," where reduced economic prosperity leads to sudden declines of consumer spending, which accounts for two-thirds of the economy. But once the economy recovers, a high savings rate still will be essential to financing the investments American business must make to improve efficiency and avoid the looming prospect of inflation. (Christian Science Monitor)
Sex ed gets another endorsement Nov 7, 2009
Keynes called it "the paradox of thrift.". Add to this a moral paradox: We are damned morally if we don t save and damned economically if we do. (Salon)
'Years needed' to rebuild wealth Sep 22, 2009
"Any attempt to reduce consumption is likely to push down on output and hence household incomes. That could actually make it harder for households to increase their saving - an effect know as the paradox of thrift.". Figures obtained by the BBC recently showed that UK households saw their wealth drop by an average of almost 31,000 each last year, because of the credit crunch and the recession. (BBC News -- Business)
Carl's Jr: When in trouble, blame socialism Sep 18, 2009
This is the famous "paradox of thrift." This is exactly what we are living through right now. The total money supply doesn't change, but the economy goes into recession because that money is not circulating. (Salon)
Tough to revive household spending Aug 31, 2009
The paradox of thrift is such that frugal living and saving more is not always good for the economy. Maybe a sensible response is to spend moderately and cautiously, giving priority to necessities and holding back on luxuries. (The Star Online, Malaysia -- Business)
Amid job fears, debt, consumer thrift slows recovery Aug 31, 2009
"We economists call it the paradox of thrift," Riccadonna says. "Consumers need to save to repair their balance sheets. But if everyone saves, we're in big trouble. Economic activity grinds to a halt.". (USA Today -- Money)
Today's economic situation is ironic paradox Aug 30, 2009
It's called the paradox of thrift. Increased saving means reduced spending, which begets fears that the economy will get worse. (Anchorage Daily News)
How not to protect consumers Aug 21, 2009
But nothing better explains the "paradox of thrift" -- in which consumer reluctance to spend holds back overall economic growth, thus leading to additional job losses and an even bigger economic sinkhole -- than some data on the U.S. household debt to net worth ratio (Found via ). Bottom line: Even as consumers have started to save, the crash in home values has sent the debt/net-worth ratio screaming in the wrong direction. (Salon)
The Economy - What Can We Expect? (13) Aug 3, 2009
The paradox of thrift is that everyone is saving and no one is spending. Johnson predicted inflation will return. (Agri-View, WI)
Paying debt poses economic paradox Jul 27, 2009
"As there's an adjustment to higher savings, then there is a potential paradox of thrift," Johnson said, referring to economist John Maynard Keynes' theory that increased saving is good for individuals but bad for society as a whole because it reduces demand ... "We definitely have a paradox of thrift going on," said Joseph LaVorgna, chief U.S. economist at Deutsche Bank Securities Inc. in New York. (Honolulu Advertiser)
LETTERS: NCT, July 19, 2009 Jul 19, 2009
" The defendant's attorney responded: "Your Honor, I'm prepared to present a dozen witnesses who didn't see my client commit the burglary. "Lancelotti didn't mention that LeVay went on to say that the part of the brain he studied "is less likely to be the sole gay nucleus of the brain than part of a chain of nuclei engaged in men and women's sexual behavior. (North County Times)
Obama's moment of truth Jul 13, 2009
(Economists call that "the paradox of thrift": Saving is good for individuals but can be bad for the economy as a whole. . (Albany Times Union)
* EDITORIAL: Jobs and wages cant be neglected Jun 28, 2009
John Maynard Keynes theory of paradox of thrift states that the more money consumers save, the less demand exists and the more damage is inflicted on the economy X especially during a slowdown. This paradox can partially explain why the nations domestic economy X including the retail, wholesale and restaurant sectors X dropped 12. (Taipei Times, Taiwan -- Sports)
Are better economic times on horizon? Jun 28, 2009
It's the old "paradox of thrift" theory (when everybody saves at once, it's supposedly bad for the economy), and it's one area where nobody's seeing green shoots. The war generation "was permanently conditioned by their experiences in the Depression," Mr. Trevisani said. (Pittsburgh Post-Gazette, PA)
To shop, or not to shop? Jun 18, 2009
In economic speak, it's called the "paradox of thrift." When a consumer cuts spending in order to save, it helps him or her. But en masse, it also hurts the economy and thus, consumers. (Yahoo News)
A nation of whingers May 16, 2009
There are some constants the spare capacity that can be put to work rapidly, the build-up in demand while the paradox of thrift has its way, that amazing herd instinct that at some stage senses 90-something per cent of people actually have jobs and stuff is cheap, that the growth is coming off a lower base et al but there also are a couple of particular factors worth factoring in. One is the astounding under-performance of the Australian housing industry. (Sydney Morning Herald -- Business)
Paul Krugman: Wage cuts squeeze workers and the shaky economy May 5, 2009
We're suffering from the paradox of thrift: Saving is a virtue, but when everyone tries to sharply increase saving at the same time, the effect is a depressed economy. We're suffering from the paradox of deleveraging: Reducing debt and cleaning up balance sheets is good, but when everyone tries to sell off assets and pay down debt at the same time, the result is a financial crisis. (Sacramento Bee -- Opinion)
Averting Depression as Consumer in U.S. Fades: Stephen Roach Apr 14, 2009
And the White House wants consumers to start spending again -- to avoid the perceived pitfalls of the paradox of thrift brought about by too much saving. Put it together and it all smacks of a dangerous sense of dj vu: promoting a false recovery by kick-starting overextended, saving-short American consumers to borrow once again by leveraging their major asset. (Bloomberg -- Columnists)
Piggy banks: Can they help save the day? Apr 4, 2009
In a widely distributed story by the Associated Press, economists are talking about the paradox of thrift, a belief that when consumers save more and spend less, they harm the economy. The AP story said, When consumers refuse to spend, companies cut back, layoffs rise, people pinch pennies even more and the recession deepens. (Business Journal of the Greater Triad Area)
Meltdown 101: Rising savings could slow recovery Mar 28, 2009
Economists call it the "paradox of thrift." While saving money is a good thing for individuals, it can be bad for the overall economy if everyone does it. Q: Will this make it hard for the country to emerge from the recession. (Anchorage Daily News)
Guest opinion: Make the most of energy efficiency Mar 25, 2009
And it is one of the few solutions to the Keynesian "paradox of thrift" the notion that what's good for our national economy (consumer spending) is often at odds with what's good for our household economy (saving). Investments in efficiency align these interests. (Montana Standard, MT)
Read the 'Cost of Freedom' recap Mar 24, 2009
Pat Dorsey: This is the paradox of thrift. Long-term, you want people to save and pay down their debts. (Fox News)
Efficiency an underused energy resourceMonday, March 23, 2009 Mar 24, 2009
And it is one of the few solutions to the Keynesian paradox of thrift the notion that what s good for our national economy (consumer spending) is often at odds with what s good for our household economy (saving). Investments in efficiency align these interests, producing benefits for both. (Missoulian, MT)
Stomped by recession, can our Consumer Nation regroup? Mar 22, 2009
Tod Porter, who heads the economics department at Youngstown State University in Ohio, one of the country s most struggling areas, sees us struggling through the cloudy waters of what economists call the paradox of thrift. In this model, savings operates like a daily multivitamin. (Helena Independent Record, MT)
All set for thrift culture? Mar 9, 2009
This need to keep people spending in hard times is what economist John Maynard Keynes famously called "the paradox of thrift". "The best guess I can make," he said in the 1930s Slump, "is that when you save five shillings, you put a man out of work for a day". (BBC News -- UK)
Consumer Spending Cutbacks Hurting Economy Mar 6, 2009
Economists call it the "paradox of thrift": What's good for each of us individually being thrifty, limiting our spending can worsen a recession when everyone does it all at once. "I wish I could say the rise in the savings rate is over," said Stuart Hoffman, chief economist at PNC Financial Services Group Inc., who thinks it will keep increasing until late this year. (ABC News -- Wire)
Workers clobbered by relentless layoffs Mar 6, 2009
Paradox of thrift'Consumer spending makes up about 70 percent of the economy ... Economists call it the paradox of thrift: Whats good for each of us individually being thrifty, limiting our spending can worsen a recession when everyone does it all at once. (MSNBC -- Business)
End of the spendthrift ethos Mar 4, 2009
Mr. Rudyk's actions, and those of millions of other U.S. consumers, are an example of what economists describe as the paradox of thrift. Although it seems rational to spend less in hard times, it can have a negative effect by reducing overall demand, leading to job losses and other negative economic consequences. (Globe and Mail -- International)
Paul Krugman: Revenge of the glut Mar 2, 2009
One way to look at the international situation right now is that we're suffering from a global paradox of thrift: Around the world, desired saving exceeds the amount businesses are willing to invest. And the result is a global slump that leaves everyone worse off. (International Herald Tribune -- Ed/Op)
Bell tolls a low and doleful tone as stockbrokers inherit loss Mar 1, 2009
"It is highly likely that savings rates will increase, which will put further downward pressure on consumption. This is what John Maynard Keynes referred to as the `Paradox of Thrift'," he said, and added that the twin problems of high consumer debt and low savings could cause a very long downturn. Douglass also expects more failures - or near failures - of financial institutions, including hedge funds, around the world which would result in ongoing uncertainty and volatility for investors. (Sydney Morning Herald -- Business)
Predicting fate of Ireland turns into a shouting match Feb 28, 2009
His research has shown that the more the Irish public is exposed to such negative views, the less it spends - a classic example of John Maynard Keynes's paradox of thrift. "This talk of disaster is so one-sided and irresponsible," O'Neill added. (International Herald Tribune)
To Spend or Not to Spend; That Is the Question Feb 26, 2009
In fact, this topic has taken me back to my college economics class and what economist John Maynard Keynes called "the paradox of thrift." The rational approach to economic uncertainty is to save, to build a surplus in case something truly dire happens, like the loss of a job or a serious reduction in income ... Hence the paradox of thrift. (Townhall.com)
Rick Santelli Rant: The Chicago Tea Party Gains a Member Feb 22, 2009
The paradox of thrift and velocity of money are real and needed to get the economy moving. However continuing to force banks to again loan to deadbeat borrowers and creating a huge stimulus that does not give every American an equal $$ amount only increases the angst and sends the economy deeper into the tank. (U.S. News & World Report)
Stimulus an investment in the future Feb 16, 2009
Most in business, even the most partisan Liberal and National Party supporters, can see that Australia (and other countries such as the US and Britain) are caught in the condition Keynes called the "paradox of thrift". The threat of rising unemployment and high levels of household debt means that the first priority of individual consumers is to cut debt, not increase spending. (The Age)
Americans saving more, spending less Feb 15, 2009
Economists call it the "paradox of thrift." What's good for individuals - spending less, saving more - is bad for the economy when everyone does it. Best places to stuff your cash right now. (The Palm Beach Post)
Resolving the Paradox of Thrift Feb 15, 2009
This is what some economists call the paradox of thrift ... This kind of behavior, contends McCulley, is what the paradox of thrift demands ... Virtually all economists agree that there is no paradox of thrift in the long run. (Time.com)
Go ahead and save. Let the government spend. Feb 15, 2009
The "paradox of thrift," a celebrated chestnut first described by John Maynard Keynes in the 1930s, has been the source of much confusion about how saving affects the health of the economy ... According to the paradox of thrift, however, if everyone tries to save more at once, total savings will actually fall ... (My colleague David Leonhardt wrote a column on Wednesday suggesting that by making certain kinds of investments like making their homes more energy efficient families could boost... (International Herald Tribune -- Business)
Obama muses on Republican relationship Feb 14, 2009
John Maynard Keynes called this the paradox of thrift : while rational consumers want to save money during hard times, it is ruinous to the economy as a whole. In December, US households saved 3. (Times Online)
Buttonwood: A lament for savers Feb 13, 2009
This is quite a different paradox of thrift from the usual one. In theory, everybody regards thrift as a virtue. (The Economist)
The tricky question of whether to spend or save Feb 11, 2009
He coined a phrase, "the paradox of thrift," to point out that what was rational for an individual during hard times saving money could be ruinous for an entire economy. Eventually, many of the savers may end up out of work because everyone else is saving, too. (International Herald Tribune -- Business)
Finding your place in a falling economy Feb 8, 2009
We are experiencing what economists call "The Paradox of Thrift." Thrift - saving - is a virtue, Grandma said. Virtuous, yes, but not what will end this recession. (San Francisco Chronicle -- Opinion)
