The second concept is based on the negative effects of increased savings. When a significant percentage of the general population saves more than they consume, the result is a slowdown in overall consumer demand, increased product inventories, and reduced manufacturing. Less manufacturing results in reduced wages and lost jobs. Reduced wages and lost jobs translate into less household income and as a result savings for the entire population actually decreases. Thus the Paradox of Thrift: Increased savings by individuals will result in reduced saving for the overall population.