lcw77

If it only says saving more, then it doesnt necessarily mean spending less. (if income increases large enough, saving and spending could increase at the same time. I also remember there seem to be a Friedman's theory on consumer spending, which argues changes of consumer spendings are less volatile and kind of stable in long-term). I agree with the second explaination, saving more provides more capital for business activities. Personal opinion, hope it helps.