Editor’s Note: On last night’s NewsHour, Paul examined the paradox of thrift. Here’s MIT’s Simon Johnson explaining the phenomenon in the segment: SIMON…

During the economic downturn, the American savings rate is rising fast, with some unexpected consequences. Paul Solman examines how the economy might suffer when thrifty consumers decide to save their money instead of spending it.

Tonight’s NewsHour features a piece called “The Paradox of Thrift.” The phrase refers to the potential downsides of squirreling money away, especially if all of us do it at once. While saving is often a good thing – and something…