Paradox of thrift

The paradox of thrift is about how saving can actually be bad for the economy. When people save money, it means that they aren't spending it on goods and services. This means businesses don't get the money they need to survive, and they might have to lay off employees or close down. This would mean fewer jobs, less money coming into businesses, and an overall weaker economy. So, even though saving money might be good for an individual, if everyone does it at the same time, it can be bad for everyone.