What is a consequence of individuals and small business owners having a higher personal savings rate?
Small business owners will not be able to pay their day to day expenses.
Employees will lose their jobs due to business not being able to pay their wages.
Consumers have greater confidence to spend when they have a cushion of liquidity to pay for unexpected expenses and do not have to go deeper into dept.
Consumers have lesser confidence to spend when they have a cushion of liquidity to pay for unexpected expenses and will have to go deeper into dept.