Nowadays, many people reckon that the economy of the country would develop if citizens spend their money. Others believe that if they save money, country’s economy will grow. In this essay, I will discuss both views of it with appropriate examples to support the notions in the subsequent paragraphs.
To begin with, economic situation is based on money. What I mean by this is that, if people work for earning money, they will allocate it for their needs. It is called money cycle and it leads to growth of economy. Because as much as more money will be participated in cycle, the economy will be so developed. For example, let us chose one person who works in certain service for people. He or she need to work for buying what they need. By doing this, money turnover will increase and GDB will grow, which undoubtedly comes to developing economy.
On the other hand, some financially illiterate citizens assume that if they save money on banks or somewhere else, the economy will soar. However, it is not correct point of view. As a result, money would not enter to the turnover. Thereby, GDB will not increase. For instance, county which has more than sufficient number of rich people will have issues with economy due to savings. Furthermore, well-off people are obviously financially literate people, therefore they will save their capitals.
Taking everything into consideration, although it is beneficial for wealty proportion of population, it is detrimental for country’s economy itself. Thus I completely agree with first statement. Money should be used in convenience of humans lives.