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...should instead spend money to create jobs. Whereas if the government tightens its belt when people and businesses are doing the same, less is spent, so unemployment gets even worse. That is the paradox of thrift. So instead they should spend now and tax later when everyone's happy to pay - Though making people happy to pay tax was something even Keynes didn't solve....

...Paradox of Thrift The Paradox of Thrift suggests that while it may be wise for an individual to save money when income is low and job prospects are precarious, it could be collectively disastrous if everyone is thrifty together. The Phillips Curve Bill Phillips' curve has historically been described as an inverse relationship between the rate of unemployment and the rate...