Becker's Paradox

Becker's Paradox refers to the idea that some economic behaviors, like saving or working harder, seem to contradict traditional theories. For instance, people might save less when they become wealthier, anticipating future needs, which goes against the idea they should save more as they have more resources. Similarly, individuals might work more despite increasing income, even when they could afford to enjoy leisure. The paradox highlights that real human behavior often involves complex motivations, emotions, and social factors that traditional models don’t fully capture. It prompts economists to consider broader influences beyond simple logic to explain economic choices.