Tuesday, February 10, 2009

There is No Paradox of Thrift


http://mises.org/story/3064

Frank Shostak on why the paradox of thrift/deleveraging is no paradox at all. Economies bloated with hot air (i.e., phony, leveraged credit) need to deflate and save. The real paradox is how otherwise intelligent people can think that a leveraged, debt-ridden country with dwindling savings can fix its economic problems with more debt and spending.

(end of post; ignore continue reading statement below)

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