The Motley Fool Discussion Boards

Previous Page

Politics & Current Events / Retire Early CampFIRE


Subject:  Re: Ten Mental Exercises Leading To Freedom Date:  4/3/2000  3:37 PM
Author:  kiddal Number:  7392 of 876046

It seems to be a commonly held idea that people must waste money for our economy to thrive...

In economics, I think this is called the Paradox of Thrift.

The basic idea is that as people (collectively) save more (beyond a certain point), total savings would go down. This would be due to a shrinking economy.

There are many industries which are not "needed" but still thrive. I suppose, in a sense, any industry not dealing directly with food, shelter or healthcare could be deemed a waste.

Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us