Is Saving Money BAD WHY – The Paradox of Thrift

Описание: We’ve all been told since we were kids: “Save your money. Don’t waste it. Think of the future.”
And honestly… that sounds like the smartest advice in the world.
But here’s the weird part: what’s good for you might not always be good for everyone.
In fact, when everybody tries to save more money at the same time—especially in a crisis—it can actually drag the whole economy down.
This little brain-twister is called the Paradox of Thrift. Economist John Maynard Keynes talked about it decades ago, and it still explains so much about why recessions get worse… and why governments sometimes spend like crazy when people are tightening their belts.
In this video, we’ll talk about:
• Why saving too much can backfire on society.
• How this paradox showed up in the Great Depression, the 2008 financial crash, and even during COVID-19.
• What governments, families, and businesses can do to strike a balance (instead of falling into the trap).
Think of it like this: you decide to save a bit more this month—smart, right? But if your neighbors, your friends, your entire town all do the same… restaurants go empty, shops close, jobs disappear. Suddenly, nobody can save. That’s the paradox in action.
The good news? There are ways out of it. Keynes had ideas. Modern governments use them. And you’ll see why context—when to save, when to spend—matters more than the old blanket advice we grew up with.
If you like videos that make economics easy (and actually kind of fun), hit like, tap subscribe, and share this with someone who’s always arguing about money at the dinner table.📌 Chapters (Timestamps):
00:00 – Why saving can sometimes hurt the economy
01:20 – The Paradox of Thrift explained simply
03:00 – A small-town story (what happens when everyone saves at once)
05:10 – Keynes’ insight and the role of governments
07:30 – History lessons: Depression, 2008 crash, COVID-19
10:15 – Why this still matters today
12:20 – Practical takeaways for families & businesses
14:00 – Final thoughts + Warren Buffett’s reminder
📚 Sources if you want to dive deeper:
• John Maynard Keynes — The General Theory of Employment, Interest, and Money (Cambridge University Press)
• Federal Reserve
• World Bank
• IMF – International Monetary Fund
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