I got into a big argument with someone here on FR a while back about the same subject, he just could not stop insisting that consumption is what makes an economy. Those of us who grew up on the farm walking behind a plow know very well that you must produce BEFORE you can consume. You can easily thrive by consuming half what you produce but you cannot make it for one day by consuming twice what you produce unless you can borrow the difference and only an idiot still believes he can borrow his way to a surplus.
Savings grow the economy. Money which is saved can be invested in new growth. It can fund opportunities that are unavailable to the impoverished. It allows one to ride through the tough times without being economically destroyed. Savings increase confidence in the future and investing for future opportunities.