Greece & Paradox of Thrift

Paradox of Thrift? What does that mean. 

When you get a bonus, what do you do with it? Save it? Spend it? If you save, good for you... but bad for the economy. It seems like a good idea, right? But if everyone were to start saving money during the economy's hard times, the result would be less consumption - which in turn we'd see a decrease in economic growth.

So where exactly does Greece stand when it comes to the paradox? Total debt to GDP for is at 124.1% based on GDP estimates for 2010 according to the International Monetary Fund (IMF). The economy is expected to shrink by at least 5% if they do implement the fiscal restraint, which in turn would decrease the amount of jobs available - increasing the unemployment, and a reduction in the aid available to the people who depend on government support.

What will happen next, only time will tell.. but as of late, the economy of Greece hasn't been up to par. Ideas are constantly thrown at them in how to fix the damage, but implementing them are easier said than done.

http://www.greenfaucet.com/economy/paradox-of-thrift-sovereign-style/83135