paradox of thrift

paradox of thrift definition - business

paradox of thrift

In economics, the theory that while it is beneficial for an individual to save a considerable amount of his or her income, the same action by a large proportion of the population will result in recession caused by insufficient aggregate demand. The paradox is that what is good for the individual is not necessarily good for the whole.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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