How often have we heard in hard economic times about our patriotic duty to spend more money? If only we would all go out and buy things, anything really, we could pull out of this recession. On the one hand, we want to commend paying down debt and saving. On the other hand, if all we do is save our economy will stall out. It's called the paradox of thrift. Frugality may be good for us, but it is bound to be bad for everyone else.I've heard this kind of reasoning often. And it has always struck me as morally and economically dubious. Is the private virtue of thrift really a public vice? Not at all, argues David Blankenhorn in an article entitled "There is No 'Paradox of Thrift'". He gives five reasons why thrift is not bad for the economy. He lists them in ascending order of importance. Read the rest HERE
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