I came across another article which brought up the old Keynesian “Paradox of Thrift” argument and was wondering if there were good resources I could link to &/or read up on for myself. I searched this site & came up with one that looked like it was on topic, but after reading it, I felt it was off …

To be honest, I’m not so sure that a great many articles are needed to debunk the paradox of thrift. It’s ridiculous on its face. When money is saved, it doesn’t just sit there, it’s loaned out and invested in lengthening the structure of production and building up capital. Resources aren’t immobile…

I would read Chapter 8 (Production: Entrepreneurship and Change), section 2 (The Net Effect of Investment) of Man, Economy, and State http://mises.org/books/mespm.pdf , which starts on page 517. In my opinion, this does a great job of eplaining the effect of an increase in savings in the economy. The…

Consumers Don’t Cause Recessions Paul Krugman and the Consumption Myth The Paradox of Thrift: RIP Krugman and the Paradox of Thrift The Campaign Against Cost Cutting Hayek on the Paradox of Saving Is the Economy a Perpetual Motion Machine? And a previous thread: The Paradox of Thrift (Gener…

saving doesn’t always go to the means of production factories ect.if i put gold under my bed for years im simply delaying my consumption the advantage for every body else is while im deciding not to buy goods the price of other goods they buy may fall until i decide to use it.the truth is any one w…

I thought it was kind of funny when I first read it, but I’ve seen it a number of times with slight variations in the way it’s expressed and it seems to be considered almost a “truism” by many people. And it isn’t just the rank and file. It seems that the mainstream economists take it as a given. I…

Thanks. I’ll have a look at it.

John James wrote the following post at Wed, Apr 20 2011 8:21 PM: Consumers Don’t Cause Recessions Paul Krugman and the Consumption Myth The Paradox of Thrift: RIP Krugman and the Paradox of Thrift The Campaign Against Cost Cutting Hayek on the Paradox of Saving Is the Economy a Perpetual Mot…

Beefheart wrote the following post at Wed, Apr 20 2011 8:24 PM: Hayek did it in P&P. That sounds like some sort of perverted bumper sticker or something. I did find it via Google, though, and it looks like it’s even available online compliements of Mises.org : Yay! http://mises.org/books/prices…

s burgess wrote the following post at Wed, Apr 20 2011 8:26 PM: saving doesn’t always go to the means of production factories ect.if i put gold under my bed for years im simply delaying my consumption the advantage for every body else is while im deciding not to buy goods the price of other goods …

On debunking "The Paradox of Thrift"

Economics Economics Questions

John_James April 20, 2011, 11:49pm 12

No problem. Got one more for you…it’ll help you with quoting.

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On debunking "The Paradox of Thrift"

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