So savings is destructive to the economy. Savings does push down the the numbers chosen for reporting. Without savings, though, The economy must grow at ever slower rates until it goes into terminal decline, if it is not there already. Savings is the capital for future expansion. Expansion that does not come from savings is what is called, without understanding the connection, bubbles, and inflation. Savings makes for smaller numbers but real that describe actual expansion rather than the fantasy numbers of inflationary bubbles.
Well, savings means that people are awaiting conditions and/or leadership that build confidence. The money doesn’t go away. Keynes was 100% wrong in blaming the Great Depression on too much savings. It was lack of confidence in Hoover and the potential impact of the Smoot-Hawley tariff, combined with Fed deflation.
stagflation