I'll show examples in both Python 2.7 and Haskell.
Say, for example, you wanted to do a really inefficient sum of all the numbers from 0 to 10,000,000. You could do this with a for loop in Python as
total = 0
for i in range(10000000):
total += i
print total
On my computer, this takes about 1.3s to execute. If instead, I changed range to xrange (the generator form of range, lazily produces a sequence of numbers), it takes 1.2s, only slightly faster. However, if I check the memory used (using the memory_profiler package), the version with range uses about 155MB of RAM, while the xrange version uses only 1MB of RAM (both numbers not including the ~11MB Python uses). This is an incredibly dramatic difference, and we can see where it comes from with this tool as well:
Mem usage Increment Line Contents
===========================================
10.875 MiB 0.004 MiB total = 0
165.926 MiB 155.051 MiB for i in range(10000000):
165.926 MiB 0.000 MiB total += i
return total
This says that before we started we were using 10.875MB, total = 0 added 0.004MB, and then for i in range(10000000): added 155.051MB when it generated the entire list of numbers [0..9999999]. If we compare to the xrange version:
Mem usage Increment Line Contents
===========================================
11.000 MiB 0.004 MiB total = 0
11.109 MiB 0.109 MiB for i in xrange(10000000):
11.109 MiB 0.000 MiB total += i
return total
So we started with 11MB and for i in xrange(10000000): added only 0.109MB. This is a huge memory savings by only adding a single letter to the code. While this example is fairly contrived, it shows how not computing a whole list until the element is needed can make things a lot more memory efficient.
Python has iterators and generators which act as a sort of "lazy" programming for when you need to yield sequences of data (although there's nothing stopping you from using them for single values), but Haskell has laziness built into every value in the language, even user-defined ones. This lets you take advantage of things like data structures that won't fit in memory without having to program complicated ways around that fact. The canonical example would be the fibonacci sequence:
fibs = 1 : 1 : zipWith (+) fibs (tail fibs)
which very elegantly expresses this famous sequence to define a recursive infinite list generating all fibonacci numbers. It's CPU efficient because all values are cached, so each element only has to be computed once (compared to a naive recursive implementation)1, but if you calculate too many elements your computer will eventually run out of RAM because you're now storing this huge list of numbers. This is an example where lazy programming lets you have CPU efficiency, but not RAM efficiency. There is a way around this, though. If you were to write
fib :: Int -> Integer
fib n = let fibs = 1 : 1 : zipWith (+) fibs (tail fibs) in fibs !! n
then this runs in near-constant memory, and does so very quickly, but memoization is lost as subsequent calls to fib have to recompute fibs.
A more complex example can be found here, where the author shows how to use lazy programming and recursion in Haskell to perform dynamic programming with arrays, a feat that most initially think is very difficult and requires mutation, but Haskell manages to do very easily with "tying the knot" style recursion. It results in both CPU and RAM efficiency, and does so in fewer lines than I'd expect in C/C++.
All this being said, there are plenty of cases where lazy programming is annoying. Often you can build up huge numbers of thunks instead of computing things as you go (I'm looking at you, foldl), and some strictness has to be introduced to attain efficiency. It also bites a lot of people with IO, when you read a file to a string as a thunk, close the file, and then try to operate on that string. It's only after the file is closed that the thunk gets evaluated, causing an IO error to occur and crashes your program. As with anything, lazy programming is not without its flaws, gotchas, and pitfalls. It takes time to learn how to work with it well, and to know what its limitations are.
1) By "naive recursive implementation", I mean implementing the fibonacci sequence as
fib :: Integer -> Integer
fib 0 = 1
fib 1 = 1
fib n = fib (n-1) + fib (n-2)
With this implementation, you can see the mathematical definition very clearly, it's very much in the style of inductive proofs, you show your base cases and then the general case. However, if I call fib 5, this will "expand" into something like
fib 5 = fib 4 + fib 3
= fib 3 + fib 2 + fib 2 + fib 1
= fib 2 + fib 1 + fib 1 + fib 0 + fib 1 + fib 0 + fib 1
= fib 1 + fib 0 + fib 1 + fib 1 + fib 0 + fib 1 + fib 0 + fib 1
= 1 + 1 + 1 + 1 + 1 + 1 + 1 + 1
= 8
When instead we'd like to share some of those computations, that way fib 3 only gets computed once, fib 2 only gets computed once, etc.
By using a recursively defined list in Haskell, we can avoid this. Internally, this list is represented something like this:
fibs = 1 : 1 : zipWith (+) fibs (tail fibs)
= 1 : 1 : zipWith (+) (f1:f2:fs) (f2:fs)
^--------------------^ ^ ^
^-------------------|-------|
= 1 : 1 : 2 : zipWith (+) (f2:f3:fs) (f3:fs)
^--------------------^ ^ ^
^-------------------|-------|
= 1 : 1 : 2 : 3 : zipWith (+) (f3:f4:fs) (f4:fs)
^--------------------^ ^ ^
^-------------------|-------|
So hopefully you can see the pattern forming here, as the list is build, it keeps pointers back to the last two elements generated in order to compute the next element. This means that for the nth element computed, there are n-2 additions performed. Even for the naive fib 5, you can see that there are more additions performed than that, and the number of additions will continue to grow exponentially. This definition is made possible through laziness and recursions, letting us turn an O(2^n) algorithm into an O(n) algorithm, but we have to give up RAM to do so. If this is defined at the top level, then values are cached for the lifetime of the program. It does mean that if you need to refer to the 1000th element repeatedly, you don't have to recompute it, just index it.
On the other hand, the definition
fib :: Int -> Integer
fib n =
let fibs = 1 : 1 : zipWith (+) fibs (tail fibs)
in fibs !! n
uses a local copy of fibs every time fib is called. We don't get caching between calls to fib, but we do get local caching, leaving our complexity O(n). Additionally, GHC is smart enough to know that we don't have to keep the beginning of the list around after we've used it to calculate the next element, so as we traverse fibs looking for the nth element, it only needs to hold on to 2-3 elements and a thunk pointing at the next element. This saves us RAM while computing it, and since it isn't defined at a global level it doesn't eat up RAM over the lifetime of the program. It's a tradeoff between when we want to spend RAM and CPU cycles, and different approaches are better for different situations. These techniques are applicable to much of Haskell programming in general, not just for this sequence!
