MMM has written about this is some of his blog posts.
Got any links?
Here's the link. Need to review it myself to see if I agree.
http://www.mrmoneymustache.com/2012/04/09/what-if-everyone-became-frugal/[Edit after reading: I remember back in my Econ 101 course, the Professor and the textbook both stated that it was individual savings that drove the economy. Below is a link to another article (albeit, written by a journalist) I just read that is interesting and also somewhat contradictory because it opposes various aspects of Keynesian economics:
http://www.forbes.com/sites/beltway/2013/01/30/think-consumption-is-the-engine-of-our-economy-think-again/"There are important lessons for public policy that come from these classical insights. Any program which accelerates the consumption of value, or worse, the destruction of value, ultimately make our society poorer. Despite what Keynes and his modern followers claim, Wars, natural disasters, terrorist attacks, faked alien invasions, or programs that encourage us to destroy our used cars — all make us poorer. These schemes reduce the amount of valuable goods and services available for society. Some may consider unemployment benefits to be a necessary policy on humanitarian grounds, but they by no means “stimulate” the economy. The recipient, after all, is consuming without producing any value for others. Disincentives for people to be productive, which have exploded in recent years, not only reduce employment, but reduce output and growth as well. This last point used to be widely believed by economists–including the immensely popular and polarizing economist, Paul Krugman, whose own 2009 textbook blamed extended unemployment benefits as one of the main reasons for decades of European stagnation and high “structural” unemployment. Now, I fear that a decade of Keynesian macro follies may have brought Eurosclerosis to America."
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