Quote:
Originally Posted by Nebe
How does saving money help the economy?!?!?
Posted from my iPhone/Mobile device
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If I put my money in the bank, say a savings account...that's the money banks use to make loans. That makes it possible for the banks to give someone a mortgage to buy their dream house, it gives banks the capital they need to make business loans, student loans, car loans, boat loans, etc.
Unless people put their money in a mattress or a coffee can, and no one does that, that money is in circulation, and it absolutely helps the economy. Does that make sense? Not sure I explained it well.
I don't buy for one second that the government can do a better job of spending my money than I can. Thus, I believe the economy is better off if individuals get to keep (and therefore inject into the economy) as much of their money as is reasonable.
Now, if the govt takes more of my money, it will obviously spend that (here in CT, they will spend it two or three times!), so that's helping the economy too. But why would anyone presume that govt spending is superior to individuals spending their own money?