Shopping Season

The shopping season in the US is indeed big. I went to UTC which is a shopping mall nearby and saw scads of people.

I remember from Macro Economics last year the theory that savers help the economy more because the bank is better at allocating money to maximize profit. That makes sense because the banks are specialised and are theoretically better at picking out the most promising businesses.

However, if people don't spend, how does a business make money?

China tends to save much more, but I wonder if there's the possibility that you save too much to the extent that aggregate demand is pushed to low.