The Paradox of Thrift

There is much talk of the paradox of thrift these days. Wikipedia defines it this way:

The paradox of thrift (or Paradox of Saving) is a paradox of economics propounded by John Maynard Keynes. The paradox states that if everyone saves more money during times of recession, then aggregate demand will fall and will in turn lower total savings in the population. One can argue that if everyone saves, then there is a decrease in consumption which leads to a fall in aggregate demand and thus leads to a fall in economic growth.

Game theory reasoning can also be applied where saving is the dominant strategy.