This is the "Paradox of Thrift":
The paradox states that an increase in autonomous saving leads to a decrease in aggregate demand and thus a decrease in gross output which will in turn lower total saving. The paradox is, narrowly speaking, that total saving may fall because of individuals' attempts to increase their saving, and, broadly speaking, that increase in saving may be harmful to an economy.[1] The paradox of thrift is an example of the fallacy of composition, the idea that what is true of the parts must always be true of the whole. The narrow claim transparently contradicts the fallacy, and the broad one does so by implication, because while individual thrift is generally averred to be good for the individual, the paradox of thrift holds that collective thrift may be bad for the economy.
50the paradox of thrift holds that collective thrift may be bad for the economy.
Collective thrift is great for the economy. It's just bad for corporate parasitism, economic stagnation, and cataclysmic wealth imbalance.
It renders parasitic business models as unviable and allows for the rebalancing of resources and development capital towards products that provide actual meaningful value for the vast majority of people.
25No, it's bad. It creates a deflationary spiral that kills all kinds of businesses. Japan's economy has been fucked for decades by low growth because of deflation.
If people don't spend money, companies fire workers. Then people spend less money because they have no jobs. So companies fire even more workers. Thrift is bad in aggregate.
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A reminder to keep boycotting Kellog’s, Starbucks, McDonald’s and Nestle. :)
49I'm familiar with the others, but what the heck did Kellog's do?
3Their CEO said that people who cannot afford a dinner should be eating cereal for dinner.
His wealth is increasing exponentially every year.
Let them eat Flakes: Kellogg’s CEO says poor families should consider ‘cereal for dinner’
12One of the more recent things here.
11Kellogg's tried to replace workers' contracts with notably worse ones. The workers went on strike. Kellogg's tried to fire all of them.
10Besides all of the mentioned stuff, the founder was a piece of shit
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16At the
riskguarantee of taking a meme too seriously...Buying, rather than saving, is how the rich get richer. They buy rentable assets. The value goes up faster than a savings account, and they have the added bonus of turning a profit along the way too. Even a company is basically a rentable asset. You pay for the privilege of using the company to make money for yourself.
If consumer activity stagnates, it's not really a threat to the rich. The economy just rallies around servicing assets instead. And putting your money in a savings account doesn't keep it out of the hands of the rich, either, cuz who do you think benefits from the loans the bank makes using that money?
14"You need to have money to make money."
This strategy also includes knowledge.
I didn't learn this from my parents or school. Only later in life I learned about investments thanks to the internet.
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"Now, why don't you save
All the money you earn?"
If I didn't eat
I'd have money to burnHallelujah I'm a bum!
8Do people still say this in 2024? This ideology must be at least a decade old
7Well capitalism is dozens of years old and a lit of people still believe in it 🤷
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I'm skipping meals (and cutting out other things too) as part of my cost cutting strategy to save up for a dentist appointment. Guess I'm responsible for the downfall of society. 🤷
1This guy definitely exists
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