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I think they mean that traditional economic wisdom is that high savings slows economic growth while high spending accelerates it. So, from the perspective of e
by anonporridge 3y ago
I think they mean that traditional economic wisdom is that high savings slows economic growth while high spending accelerates it.
So, from the perspective of economic growth, we want people to spend as much as possible, not save.
Beyond the money itself that is spent that spurs growth, you also can add on the fact that people with minimal savings are forced to work to survive. People with lots of savings are more inclined to lounge around and be unproductive.
Of course, one could also argue that people with minimal savings are less creative, because they're in constant survival mode and grinding out the style of work they've always done.
- erikerikson 3y ago> we want people to spend as much as possible, That feels like a perversion of the credit industry. We can clarify that we want people to have as much excess income as possible, spending a fair percentage of it. If they're spending more than a sustainable amount, they are incurring excess and efficiencies and/or deficit spending which will have a suppressive effect on spending over the long term.