Savings Vs. Spending

It seems that some economists are confused about whether spending or savings is the cure for our ailing economy. Essentially, both spending and savings play an integral role in economic growth. Nevertheless, spending stimulate the economy, especially, spending on manufacturing, and key infrastructure.

It must be noted that consumer spending is good, for it denotes consumers' confidence. However, in a time of recession consumers should not engage in wanton spending, rather, they should carefully balance their spending with moderate savings to insure against such misfortune as temporary layoffs, reduction in work hours, and other recession-borne issues.

Wesley Palmer, MBA
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