It's bad for MACROeconomics. A consumer based economy suffers when consumer spending is down. More saving and less spending may be good for the individual, but

It's bad for MACROeconomics. A consumer based economy suffers when consumer spending is down. More saving and less spending may be good for the individual, but it's bad for the economy. It results in lower sales volumes for business, less lending for banks, and an over all "liquidity trap" where increases in cash simply go into investments which don't stimulate the economy. Over a long enough time period, this leads to deflation, which believe it or not is actually MUCH WORSE than inflation as it can be near impossible to recover from (see the great depression for examples).