[news] Thrift seen as a big threat to growth

[Resist!ca]

Mr. Dodge said that demographic shift threatens to push the world economy into stagnation for years, as consumer spending sags, dragging down growth and pushing up unemployment. "There really is a risk of a prolonged deficiency in global demand as we look out over the next couple of decades," he said, speaking to the Spruce Meadows roundtable conference in Calgary. A higher rate of savings might seem to be an unalloyed virtue, but for economists too much thrift is a bad thing, if it eats into demand too much.

URL: http://resist.ca/story/2005/9/13/05517/1529