The paradox of thrift
About this model
John Maynard Keynes, 1936. When every household tries to save more, spending falls, incomes fall and total saving ends no higher. A teaching model: it keeps only this core loop and leaves out everything else a real economy has.
"The paradox of thrift" is a public Machinations diagram shared in the Community by Machinations, with 27 components.
It was created in October 2026 and last edited in November 2026.
Open the diagram in the Machinations app and press Play to watch the resources move, adjust its values to test how the system responds, or remix it to make an editable copy in My diagrams.
