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Home > QFINANCE Dictionary > Definition of paradox of thrift

Definition of

paradox of thrift


cutbacks in expenditure lead to increased expenditure elsewhere the observation that savings made by individuals in their consumption lead to a drop in overall demand which in turn leads to increased spending by a business or government.

Related definitions of "paradox of thrift"

Recommended Further Reading (Term count)
  • Prophet of Instability
    by David Smith
    This article was first published in Quantum magazine.When, in December 2008, Bernie Madoff confessed to his sons that there was “absolutely nothing” left in his massive investment fund and that it had been “one big lie” and “a giant Ponzi scheme” from the start, the thoughts of many people turned to previous scandals revealed by a sudden change in the financial weather.In Madoff’s case, the exposure of the scandal was attributed to the sudden...

Definitions of ’paradox of thrift’ and meaning of ’paradox of thrift’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’paradox of thrift’ and other financial terms with our online QFINANCE Financial Dictionary.

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