There has been an ongoing debate over whether individuals should spend money for economic growth or they should save for themselves. While liquidity is curucial for countries’ economies, it is reasonable that people want to make investments due to future incertitudes. This essay will discuss both views and reveal my own thoughts.
On one hand, consumer spending is the predominant factor to boost economic activity, which empowers the nation. When citizens spend their disposable income, they enhance cash flow which directly serves for the gross domestic product of the country. Thus, the probability of an economic downturn or a peirod of recession can be reduced, and the country’s global recognition strengthens. On the other hand, it is important to note that overconsumption causes inflation, which surges the cost of living and reduces life quality; however, by government intervention and with some regulations this can be tackled.
The belief that saving money is beneficial for individuals has its own rights. Nowadays nobody can predict their future and wants to guarentee their family’s life. This is why investments for children, future plans, and insurances are very popular for personal benefits, but harmful from a broader perspective
In conclusion, both sides have their economic and personal advantages; nevertheless, I consider that it is challenging to be optimistic about future without an advanced economy, even though we have already saved money. The predominant way to have satisfied economic life is to ensure an improved national economy, but not a personal developped one.