The savings paradox means that it is no longer possible in a under-busy national economy the restaurant subjects to increase because of increased savings desires the saving of the national economy.

Such a national economy is described by Keynes' expenditure for income.

Popular-scientifically and the savings paradox can related to an example be united to authors (e.g. Peter Bofinger) according to approximately in such a way formulate: By wage lowering an individual enterprise can improve its market position. If all enterprises pull tight, this can the overall economic demand decrease and unfavorably all enterprises affect.

Keynes drew the following comparison: If an individual person in a fully occupied cinema rises, it can see better. If all visitor copies, none sees better, although all must stand now.

See also

Competition paradox (Wolfgang

Literature

• Walburga of Zameck: The savings paradox. In: Economiceconomics study, 19. Jg., number 8 (August 1990), P. 397-399.

Articles in category "Savings paradox"

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