how does saving hurt the economy?
I'm getting the impression that people who save are not helping the economy... based on news commentary and CNBC chit chat. These guys seem to think that we must buy stuff in order for our economy to maintain it's health.
Well, I guess that makes a kind of sense.
But what happens to money that is saved in banks (i.e. CDs, checking accounts, money markets)?
Isn't the bank using this money in some way? Surely they aren't just storing it in shoe boxes.
So a nation of savers could hurt our economy? really?
(of course, having a "nation of savers" is the *least* of our problems... they seem rare in the U.S.)