Is Saving And Investing Bad For The Economy?

We hear this all the time from people around us, "Spend more to contribute to our economy". This statement is factually bias. It assumes that keeping money in your savings account or in equities is bad for the economy. That is not true. Here are the reasons why:

When you invest in bonds. You are actually assisting companies to grow by helping them raise cash. The market capitalization of a company is dependent on its share price. So when you buy stocks to invest, you too are supporting the value of the company. I don't see how these "smarter" options are 'bad' for the economy. To the contrary I think they are very much helpful.

When you put your money into your savings account, you are basically loaning money to the bank. They give you an interest payment every month and use your money to invest or loan out for a higher yield. Both parties are beneficial. Instead of helping the retail sector, you are assisting the banking sector. Which is good for the economy.

Unless of course, if you keep physically cash in a biscuit tin hidden under your bed, then that would be bad.