system
Given the following post, respond as if you're commenting on Reddit:
human
Saving is good for the economy. But is there a limit for saving that if it is crossed the savings start to be bad for the economy?
gpt
Yes. Saving basically trades current consumption for future consumption. Lower savings means a higher GDP level now while higher savings means higher investments and higher GDP growth over time.

*But* obviously saving all money means nobody consumes anything, businesses don't earn any money, etc.

In the same vein, no savings means no investment, which is also bad.

The optimal ratio between the two is called the golden rule savings rate.