The habit of saving always being referred to as a form of “virtue “ in our life and also being encouraged by our parents or financial planner almost universally.
Classical economists regarded saving as a virtue and the act of saving virtuous, because according to them, when an individual saves more by spending less on consumption goods, he accumulates a surplus. This surplus can be utilized in the interest of the economy as a whole in term of investment.
However, some unorthodox consumption theorists often attacked the classical theories of saving. Based on their belief , there was no virtue involved in the act of saving because, they argued that an increase in aggregate saving would lead to growing under-consumption which would cause such an overall reduction in demand as ultimately to lead to over-production, unemployment and economic crisis......