Therein lies the paradox. Individual savings is a virtue, but if the everyone saves, your economy will slow down, reducing wages and driving down the amount of money you can save.
Yet savings are a requirement for investing, which is necessary to promote economical growth.
I don't buy that it's such a paradox. Saving will slow down the consumer's market, but the investments will profit other kinds of industries, especially exports, which will then rack in profits for their investors. In the end, if we save more, we'll just see a shift in our main economic industries. Since the global economy is more and more open, we will just end up compensating for our smaller internal demand by seeking foreign markets as outlets for our products and services.
