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MSE News: Spending less at Christmas meant more enjoyment, MSE poll finds

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"Those who cut back had a better time over Christmas than those who spent more than usual..."
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More to the point, see "paradox of thrift" for why individual acts of selfish scrimping will make us all poorer in the end..... Even those who scrimp.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
Someone please spare us from the preachers of doom.
Happy New (hopefully debt-free) Year to everyone.
The paradox of thrift only seems to apply if you don't put that purchase on credit.
There was an article on a German site that said that saving up for something big actually has a more psychologically gratifying effect than the purchase itself.
Its a healthy balance between splashing out on some extra treats and enjoying the simple things like spending TIME together as a family without over indulgence or the pressure of worrying about not even being able to afford the basics
We had a simple Christmas this year and enjoyed it more as it brought home to us the value of FAMILY as we nearly didn't get to spend it together at all and all the money or presents in the world would never have made up for that!
The paradox of thrift applies either way.
The important issue is a reduction in demand due to a decrease in consumer spending. Whether that reduction in spending is from an increase in savings or an decrease in debt is not relevant. Either way, we all ultimately end up poorer as a result.
The paradox of thrift states that if everyone tries to save more money during times of economic recession, then demand will fall, unemployment will rise, and total savings in the population will reduce because of the decrease in consumption, employment and economic growth.
The paradox is that total savings will fall despite individual savers attempting to increase their savings, as the decrease in economic activity makes us all poorer in the end.
As with many things in life, the selfishness of individuals can lead to short term gain for them, but will then eventually lead to long term pain for everyone including them.
So while nobody is suggesting individuals should take on reckless or unmanageable levels of debt, the concept of encouraging everyone to decrease spending is fundamentally flawed.
If everyone did it, we'd all get poorer as a result.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
Oh, I do apologise for my utter selfishness in saving my hard-earned, rather than spending it all on tat.
Where shall I go to hand over my savings and atone for my sins?
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The answer for many (not everyone) is: Because I can't afford it.
You seemed to be suggesting that people who cannot afford to spend lots on Christmas should recklessly go out and spend anyway.