Why Do Some Financial Experts Believe That Saving Money Makes a Bad Economy Worse?
Some experts maintain that saving money only makes a bad economy worse. As you might imagine, this is a controversial theory, particularly with the rest of us feeling great uncertainty during these periods. There is, however, a basis for this theory. One of the major components of a bad economy is the lack of spending by individuals and businesses. People don’t buy products, services, and strictly reduce all discretionary spending. Businesses don’t buy inventory, new locations, machinery, or technology since sales are down. A complete Catch-22 condition, this lack of across-the-board spending helps perpetuate the already downward spiraling economy. These proponents will happily tell you that if you actually start to increase your savings accounts, you further escalate the downturn by removing more money from the national economy. With less money in circulation, the situation only worsens. This theory actually works on paper. Increased spending is what eventually helps reverse the bad e
