The Paradox of Thrift: A Case Study of United States of America

Vermann (2012) and Thies (1996)’s papers indicate that the paradox of thrift is no longer in vogue United States America (USA). This paper argues still applicable to USA even though she operating with sufficient demand. The main objective this determine whether after Great Depression. In doing this, a vector error correction model was estimated using annual data gross national income, domestic saving, investment final consumption expenditure from 1971 2020. results investigation showed saving increase when income increases. Gross falls current unchanged previous rises. target economic policy should be not because naturally both will if increases USA.