What did Keynes say about the paradox of thrift?

Well, essentially, Keynes told us that in times of recession we must lower the savings rate.

Theresa May has achieved the extraordinary feat of turning UK households into deficit borrowers.

So, recent Tory policy is most Keynesian then, isn’t it?

The only way ou of this being to say well, we’re no longer in recession so we don’t need to lower the savings rate. But then the Senior Lecturer isn’t going to admit that, is he?

3 thoughts on “What did Keynes say about the paradox of thrift?”

  1. Govt deficits in a recession to be matched by surpluses in the good times. Politicians like to stress the latter.

    Typo, former.

  2. Bloke in North Dorset

    Slightly OT.

    Murphy’s reference to Aristotle the other day appears to be another attempt to crawl up McDonnell’s arse. According to the the New Statesman McDonnell spent the summer reading Aristotle’s Politics.

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