The Paradox of Thrift

08/29/12 • 1 min

60-Second Adventures in Economics - for iPad/Mac/PC

The Paradox of Thrift suggests that while it may be wise for an individual to save money when income is low and job prospects are precarious, it could be collectively disastrous if everyone is thrifty together.

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Transcript -- The Paradox of Thrift

Transcript -- The Paradox of Thrift suggests that while it may be wise for an individual to save money when income is low and job prospects are precarious, it could be collectively disastrous if everyone is thrifty together.

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Transcript -- The Invisible Hand

Transcript -- Economist, Adam Smith, used the term The Invisible Hand to describe the self-regulating nature of the market place - a core concept for so-called free-marketeers.