Related to the Economics in Practice on p. 476: The paradox of thrift is that all people deciding to save more could lead to them saving less.

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This is because if everyone decides to save more, then there will be less spending in the economy, which could lead to a decrease in demand for goods and services. This decrease in demand can then lead to a decrease in supply, meaning fewer jobs, lower incomes, and ultimately less saving. Therefore, the paradox of thrift suggests that individual decisions to save more can lead to an overall decrease in savings.

Related to the Economics in Practice on P