[Fian]

While I can see how extreme savings can be bad for an economy, an extreme lack of savings is also bad. Currently American society spends more than they make. This is possible due there being money in banks to borrow (probably due to excessive savings in the past, plus foreign investment). If spending exceeds savings for a long period of time, one would expect that eventually the money in banks would run out, abruptly forcing an end to spending. This would be cause an abrupt end to spending, preventing future investment in infrastructure and new businesses, resulting in a major depression in an economy. A lack of savings would also result in a weak civilization unable to fight an extended war (one reason why WW1 and WW2 Lasted so long was because the European nations had a deep reserve of money, plus the Americans were also willing to lend money to European nations as well). On the other hand, a society with a high emphasis on savings would have a constant drag on their economy, never fully achieving their potential when it comes to economic output. I have never heard of civilization collapse due to excessive savings, but I suppose it is in theory possible, maybe driven by a threat of war.

One thing that I dislike about the presentation of economic theories in the classroom (my wife is currently taking an economic course) is that they tend to present truth in the form of black versus white. Spending is good. Saving is bad. I believe it would be better to look at economics as a series of competing forces that must be kept in balance. Encouraging spending is good, yet a certain level of savings is necessary as well. During economic good times, savings should slightly exceed debt spending. During economic bad times, savings should be slightly lower than debt spending. Can anyone disagree with this?