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Wait, Is Saving Good or Bad? The Paradox of Thrift (Page One Economics)

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 issue explores this "paradox of thrift."

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Audience:   High School, Consumers, College
Language:   English
Subjects:   Civics/Government, Personal Finance, AP, Economics, Data Literacy
Resource Types:   Data, Publications, Newsletter, Lessons
Concepts:   Saving, Factors of Production/Productive Resources