Why is it that in a time of economic crisis, people want advice to save money?

I mean, people are getting advice as to how to save money, when they should just spend money in order to stimulate the economy.





Not that I particularly care, because I'm just waiting for society to collapse, but still...Why is it that in a time of economic crisis, people want advice to save money?
Because its not our job to stimulate the economy. When the times are tough people don't always know if they will be getting their next paycheck. Take personal finances before you care about the world economy.Why is it that in a time of economic crisis, people want advice to save money?
In this particular situation it's because people are running out of money to spend. The price of things like food and utilities is only going up. People need to save money in order to make ends meat. It's not because they're being selfish and don't care about the economy, it's that they are finding out that life is really tough right now and it doesn't look like things are going to be getting any better.





Only people who have taken Intro to Macroeconomics or have some useless degree in economics think along the lines that you just did. Some people are saving money because they think they will need it to get through the hard times that are ahead. If they were really ahead of the curve they would realize that these attempts at saving money are fruitless since money will have little to no value in the coming days.





When the dollar is completely worthless due to hyperinflation only tangible, in-your-hand goods will be worth anything. Medicine, food, ammunition and weapons, fuel; these are the things that will be worth anything. It's time to go back to bartering, baby. If you think I'm just being paranoid then thank you for not inflating the price of these goods by buying them up.
They save money out of fear of losing their income or job AND they save money generally to pay off debt.





This is the natural corrective process, the necessary recession, to fix all the stupid decisions and recklessness made during the boom where people over-consumed and accumulated debt.





Please NEVER say that spending stimulates the economy....consumption, spending and borrowing doesn't stimulate the economy...all it does is create a temporary fake inflationary boom, kind of like a drug, then it wears off and you're worse than when you started.





Only capital accumulation stimulates the economy....meaning savings. When you save money and invest it....even putting it in the bank is investing it, it provides capital and lendable funds for businesses to use to expand....when you save more, at the margin it lowers interest rates for borrowers so businesses can grow and produce more and generate economic growth.








Production and savings are how economies grow, and the only stimulus can occur from capital accumulation which is from savings.....spending harms this.








Please read this article to understand how and why savings is essential to a recovery so then you can slap every other person who thinks spending stimulates the economy...i know it's long, but just take 10 minutes or so to learn how recovery occurs.





http://mises.org/story/3353
Hi Travis, I think the problem is a little deeper then that.





It's about fulfillment in regards to a person. Lets take two people on has six figures in the bank one has $10.





Is the first person fulfilled with the extra zero's? Or the feeling of security?





You understand that what a person is missing is the feeling of security.





You are right; to try and convince someone they will get this feeling of security by adding zero's to their bank account is plain wrong, it won't work.





The root of the problem is lack of trust. If everyone will find a point of trust, then that's all we need to get out of it.





Where we can find that point of trust? In my opinion it can only come from mutual concern. Please understand it's a feeling, rather then something tangible.
We find ourselves in this mess not because people stopped spending but because people spent more than they owned ie overspent. They spent somebody else's savings as well!