It's been addressed on MMM: http://www.mrmoneymustache.com/2012/04/09/what-if-everyone-became-frugal/ http://www.mrmoneymustache.com/2012/04/09/what-if-everyon

It's been addressed on MMM: http://www.mrmoneymustache.com/2012/04/09/what-if-everyone-became-frugal/ http://www.mrmoneymustache.com/2012/04/09/what-if-everyone-b... The key quote: "If an entire society gradually decides that it wants to consume less, then it needs to produce less as well. If there is less stuff that needs to be produced, then people don’t have to work as many hours to create it. That’s perfect, because many people will be dropping out of the workforce much earlier as they finish earning the money they need to get going on their early retirement. The shortage of available work will be balanced by the reduced number of people willing to do that work."