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This is a cute story, but recessions are not self-fulfilling prophecies. When people tighten their belts and adjust to economic reality, the economy as a whole
by helveticaman 18y ago
This is a cute story, but recessions are not self-fulfilling prophecies. When people tighten their belts and adjust to economic reality, the economy as a whole adapts to a recession and prepares to get back out of one.
I think.
- smanek 18y agohttp://en.wikipedia.org/wiki/Paradox_of_thrift http://en.wikipedia.org/wiki/Paradox_of_thrift
- dgabriel 18y agoInteresting wikipedia article. Thanks for sharing. I have only a limited exposure to economics. From a mostly layperson's perspective, however, in a credit crisis, it makes sense to increase loanable funds, therefore saving may be very good for the economy in the long run.