The Paradox of Thrift posits that a rise in aggregate savings does not guarantee a commensurate rise in total economic savings. This theory operates as follows:
1. In a Keynesian framework, if individuals collectively reduce spending to save more, the economy's overall savings may not actually grow.
2. The mechanism starts with individuals augmenting their savings by curtailing expenditure.
3. A decline in spending directly reduces aggregate demand within the economy.
4. Diminished demand prompts businesses to scale back production, leading to reduced income for employees and a potential uptick in unemployment.
5. With lower incomes, individuals find their capacity to save is also diminished, potentially leaving total savings unchanged or even reduced.
6. Consequently, an increase in individual saving behavior paradoxically results in stagnant or reduced overall economic savings.
The accurate understanding of the Paradox of Thrift is: "If the entire population of an economy increases the fraction of income they save, the aggregate value of savings will not increase; it will either decline or remain constant."
The more widespread aspect of the globalisation of agriculture is the entry of multinationals into this sector as sellers of agricultural inputs such as seeds, pesticides and fertilisers. Over the last decade or so, the government has scaled down its 'agricultural development programmes and agricultural extension' agents have been replaced in the villages by agents of seed, fertiliser and pesticide companies.
Based on the given passage, answer the following question :
(a) How is agriculture becoming more commercialised?
Differentiate between social change and social movement.