Wait, Is Saving Good or Bad? The Paradox of Thrift (Page One Economics Classroom Edition)
Classroom Edition (.pdf)
The average saving rate for the typical American household before the recession started in 2007 was 2.9 percent; since then it has risen to 5 percent. Uncertainty about the future was the primary driver for the increase. More saving is a good thing, right? Well, some economists argue it might be detrimental to the overall economy. Given the benefits to individuals, how could this be? The May 2012 Page One explores this “paradox of thrift.”
Go to the Page One Economics web site.
Keep your students in the know on timely economic issues with the new Page One Economics Newsletter Classroom Edition. The Page One Economics newsletter provides a simple, short overview of a current economic event. The Teacher’s Guide includes student questions and a teacher answer key, plus additional resources and lesson ideas for classroom, extra credit, or make-up assignments. You can subscribe via RSS feed.
Tags: 9-12, AP, Capital Resources, Civics/Government, College, Data, Economics, English, General Audience/Consumers, Investment, Lessons, Library, Newsletter, Page One Classroom, Paradox of Thrift, Personal Finance