Sometimes it is, sometimes it isn't. Too much saving can cause economies to collapse just as too much spending (and debt) can. It also depends on what you do w

Sometimes it is, sometimes it isn't. Too much saving can cause economies to collapse just as too much spending (and debt) can. It also depends on what you do with that saving. If you keep it under your mattress than it's as a whole bad for the economy since money (and hence value) is taken out of circulation. But even if you invest that money than it might not be good for the economy. In theory, if there is less consumption then there are less things that are being sold. That means companies make less profit, which in turn means investments yield less value. If enough consumption is reduced, saving could even result in negative value (I.E. you lose money). In fact during a depression it is common for governments to artificially increase consumption to boost the economy (whether by public works or reducing interest rates). Of course those are extremes. In reality less consumption could turn into a better and perhaps more equal economy or it could turn into a vicious cycle and a depression. Historically speaking though, reduced consumption is usually a precursor to reduced economical growth and accompanies a depression and not the opposite.