Not sure who down voted, as directionally you are correct.
That said, there is such a thing as a health propensity to save in economics. You want the growth, etc., but you also want demand to be somewhat resistant to short-term ups/downs. That can only be achieved if the consumers save enough in order to keep spending, even if the income is fluctuating.
In practice, this is very very difficulty and has to do with social norms/attitudes as much as with actual economics.
Personally though, the amount of pull back we had in spending in the 2008 crash was not fun. I'd rather forego a bit of growth in exchange for a more consistent demand and a financially more sound neighbors who will not drag me down with them if/when economy sputters.
That said, there is such a thing as a health propensity to save in economics. You want the growth, etc., but you also want demand to be somewhat resistant to short-term ups/downs. That can only be achieved if the consumers save enough in order to keep spending, even if the income is fluctuating.
In practice, this is very very difficulty and has to do with social norms/attitudes as much as with actual economics.
Personally though, the amount of pull back we had in spending in the 2008 crash was not fun. I'd rather forego a bit of growth in exchange for a more consistent demand and a financially more sound neighbors who will not drag me down with them if/when economy sputters.