Save, Baby, Save

It is called the paradox of thrift. The idea dates back to the days of the legendary economist John Maynard Keynes. It is alive and well today, coloring economic forecasts and painting a dim picture of the long run outlook for the economy. Consumers represent roughly 70% of the economy. If consumers pull back too much, as they did after the Lehman Brothers' collapse, the economy suffers.
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