SSC Selection Post 2022 PYQ — Question 27

The correct answer is option 2 i.e. John Maynard Keynes.

The concept of the ‘paradox of thrift’ was introduced by the famous British economist John Maynard Keynes. In his influential 1936 work, The General Theory of Employment, Interest, and Money, Keynes argued that while saving is beneficial for individuals, if everyone starts saving more at the same time, it can actually reduce overall demand in the economy. This decrease in demand can lead to lower income, reduced production, and higher unemployment, ultimately having a negative impact on the economy as a whole. Thus, what is good for individuals may not always be good for society collectively.