Explain to me why saving "is bad for the economy", Sup Forums. Alot of you seem to think this

Explain to me why saving "is bad for the economy", Sup Forums. Alot of you seem to think this.

any amount you save gets taken out of the economy until you decide to spend it back in.

just imagine how much innovation could happen if a person like bill gates was using his bankroll to invest into new tech?

or if trump invested into new textiles for building materials?

if that capital was circulating in the economy everybody would be taxed less, deflation would happen, cost of living would drop.

however, minimum wage would also decrease because it's based on cost of living (theoretically).

economics is all about balance.
and if your bank account is unbalanced with society, then you're a part of the problem.

it's not about "you don't need $100 million."
it's about, "what type of dumbass hordes $100 million and doesn't invest it?"

Saving what nigger?

saving means it's not going around , meaning companies can't use that money to invest/hire more employees , since companies can't get that money because you won't buy anything with it..
that's the really dumbed down version of what the actual problem is with saving.

Only a Keynesian would believe this.

Why does the bank tend to give 1% interest on money in a savings account?

I'll wait.

People mis-think:
-that money is value
-that deflation means everyone will/can wait for prices to be near-zero
-implicitly, that saving means peope work less...which is the ultimate source of value
t. someone with iq over 90

That's the bank compensating for inflation.
This way if you save , you won't actually lose money. You won't really make any money either , that's just what it looks like.

Saving is not bad if you save money and there are no many money in circulation the fed will just make more of them. the problem is not saving is how you use the money: from a great capital comes great responsabilities

>that picture

My AgEcon porfessor trigger about 200 kids on Tuesday when one kid asked what he thought about raising the minimum wage to $15. He spent the entire fucking lecture explaining how it was a terrible idea and kids were walking out. He gave us a pop quiz at the end over it that consisted soley of writing our name on a piece of paper and drawing a graph of the current supply and demand for labor vs the supply and demand for labor if we were to increase to $15/hr tomorrow while leaving his graph of the exact situation on the projector. Easiest fucking 10 points of my life.

Saving money gives banks lending power you dense twat. Everything you said was basically wrong

But when you save your money in a bank (not under your matress) doesn't the bank loan the money out to new startups so they can invent new stuff or create more jobs or bolster the economy?

Assuming bill gates uses banks, he is using his bank roll to fund innovation.

Only in theory (lol classical economics). Back in the real world we have record levels of savings and the lowest level of investiment since WW2 because bank deposits are being used to buy government bonds, pump housing bubbles and other non productive activities.

Saving is not bad all the time. The problem is when everyone tries to save at once. One person's spending is another's income. Without spending there is no income from which to save.

Bill Gates like all other billionaires keep most of his assets in hedge funds.

>doesn't the bank loan the money out

Nope, banks actually loan money they create out of thin air. Compared to the amount of debt in the society the savings are pretty much irrelevant.

>One person's spending is another's income.
muh money is value meme

Money is a means of storing value, not the value itself. What are you implying?

Saving, ie, keeping all your cash under your mattress is retarded because of inflation.

Other than that, I don't see the problem.

Because they're turbo retards that no a little about a lot of things - flow of money being one. Little do they realise billionaires horde their money like Jews (many are Kikes) and that is what caused an explosion in 'wealth inequality'.
Money currently goes up, very little comes back down to working classes.
Unless you have millions or billions, your small nest egg is very insignificant.

>actually thinks this is how rich people store their money
No hope for you, user.

The federal reserve has artificially depressed saving interest rates for nearly 25 years now. Not a hard concept...

>No
>No
>Wrong
>Stupid
>Still wrong
>Still stupid
>And No

This is the problem. You have a bunch of people who think they know everything and lack basic understanding of even the simplest concepts.

The problem is not people saving and keeping their money in banks, the problem is multi millionaires and billionaires who ship their cash overseas into Swiss bank accounts. That is how money is taken out of the economy, not saving it in a bank account.

Also, if you knew anything about the incredibly rich, they are estimated at that worth because most of their wealth is tied up in assets, not cash. So yes, Bill Gates is worth billions, but I'd bet he has less than 10% of his wealth in cash.

Bill Gates is a terrible example because he invests in TONS of shit.