Re: Ok who\'s retarded, Me or Newsweek (Economics)
Increased savings indicates that consumers are using more discretion in which products they decide to buy. They prefer holding onto their money, rather than presently trading it for goods and services they do not value as highly.
This will increase competition between companies -- perhaps some that aren't keeping up with the change in consumer demands will fold. All this means is that the producers who are able to adapt and provide a better and wider range of products will be the ones to survive. Then, the capital will once again start to flow, this time in their direction, since they will be the best at providing for their customers.
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