Explanation:

Paradox of thrift was popularized by the renowned economist John Maynard Keynes. It states that individuals try to save more during an economic recession, which essentially leads to a fall in aggregate demand and hence in economic growth. Such a situation is harmful for everybody as investments give lower returns than normal. Keynes further said that such a mass increase in savings eventually hurts the economy as a whole. This theory was heavily criticized by non-Keynesian economists on the ground that an increase in savings allows  banks to lend  more. This will make interest rates go down and lead to an increase in lending and, therefore, spending.