Hmm, I think you&#x27;re mostly right, but here&#x27;s the thing. If you put consumer money in the bank, then it goes to investment in additional production. Loans to businesses allow them to staff up and&#x2F;or purchase capital equipment. However, if in the aggregate, the base consumer purchasers don&#x27;t have any cash, they won&#x27;t be buying things from those businesses.<p>What you are saying sounds so easy, but if it were, there wouldn&#x27;t be recessions or liquidity traps. You&#x27;re right that production is key, but if the monetary system becomes friction in between producers and consumers, then problems can arise even if production is okay. I don&#x27;t really see a contradiction here. Savings are the foundation of future wealth, but if nobody spends any money, businesses crumble, and capacity is lost. When people decide to spend again, it takes time for the economy to recover.