Monday, March 30, 2015

Maggie Chamberlain, Chapter 9, Question 6

A part of the reading that I found to be especially interesting was the harmful paradox on page 202 that describes how our natural reaction to precarious economic situations is to be more cautious with our spending, which, consequently, just makes everyone else's situation worse because if I spend less due to a smaller income that I'm receiving then other people are not benefiting from receiving my money. So, does that mean we should actually spend more money in troubled economic times? Most of us get cautious to spend our money because we can't predict whether we'd get it back later as a result of giving it to someone else, but if we are more generous with our money while the economy is damaged, will that actually heal the economy faster?

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