The whole narrative is a bit of a misnomer. Saving doesn't reduce consumption, it moves it forward in time. Borrowing doesn't increase consumption, it moves it from the future to the present.
Yesterday's savers are consuming today. A lot of this has to do with demographics as well. The greatest consumption (and usually economic growth) occurs when the largest generation is in the very middle of their lives (Boomers in the 80s, 90s, for example). The 35-45 year old cohort buys houses, pops out 2.4 children/couple, etc.
Right now the biggest generations are the Millennials and the Baby Boomers, who are young and old, respectively. Generation X is the group in the middle-aged, high-spending time of their lives, and they are a much smaller cohort.
When the Millennials are in their prime earnings years we'll see spending and antimustachianism galore.