-- Paradox of Thrift - The paradox of thrift theory was created by an economist by the name of John Maynard Keynes(The Economic Times Keynes believed

-- Paradox of Thrift - The paradox of thrift theory was...

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The paradox of thrift theory was created by an economist by the name of John Maynard Keynes (The Economic Times). Keynes believed that during a recession people tend to save more, which is right. Therefore, the paradox of thrift is when people begin to save excessively instead of spend. This paradox is a part of the Keynesian theory that we learned about last week. Which talked about a possible fix for a recession or depression. The Keynesian theory was based off the act of the government borrowing money in order to spend it. One theory deals with a cause for a growing recession and possible depression, paradox of thrift. While the other theorizes how it can be fixed, the Keynesian theory. Between these two theories I don’t agree with either but I understand their purposes. In regards to the paradox of thrift theory I agree with the idea that if many people begin to save excessively during a recession could cause the

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