Keynes's Paradox of Thrift: I never thought it could actually occur, until it did

I've been out of college for 2 years and I have been considering going back to get my masters. I have the money for it, but I've been working odd jobs and my full time job to save up for it. <br><br>I've noticed a pattern that I also noticed during the pandemic: to save money, I don't go out. I buy the cheapest food, don't go out to eat, etc. First, this is good for me, as I am saving money: this is the whole point. <br><br>Here's the rub: as I'm saving, I'm also doing a lot less business, mostly with restaurants and food stores. I'm not going out to eat because I don't want to spend money, but this also means I'm not doing business with these companies, and these companies with employees and, you know, their loans and debt. <br><br>My point is that we are living in a time where people are saving money for the future. Until they are ready to go back to school or whatever, they will stop doing business, which also means they stop creating new business for others. This can lead to chain effects, where other businesses rely on me as a customer to pay for their loans, pay for their employees, etc. <br><br>I am talking about Keynes's paradox of thrift, where saving is a good idea for an individual, but for the economy as a whole, is it a bad idea? <br><br>For example, a business owner might have a loan for a restaurant. They make money from making food. But when I come to the restaurant, I am spending money, and they can pay off their loan because they have money coming in. <br><br>All of a sudden, I stop coming to the restaurant. The business owner still owes money on the loan, but now has less money coming in because of me. This means the business owner has to say sorry to the bank or they will default on the loan. <br><br>If more people stop going to the restaurant, the business owner has less and less money. They might have to close the restaurant.<br><br>Now there is a closed restaurant with employees with no income. No business, no money to pay the loan, default on a loan, closed business. <br><br>This is what I mean: saving is good for the individual, but for the economy as a whole, is it a bad idea? If we all are saving money, then we are creating fewer businesses and doing less business with each other. Is this where we need to tax these savings and invest them in business, stimulate spending, etc.?