Some people think that it is better for a country’s economy for people to spend money while others believe that it would be better for people to save money. Discuss both sides and give your opinion.

A major portion of the

economy

of a country thrives by the goods and services which are produced and utilised by the people. While some people believe that it is vital for them to be extravagant for the benefit of the

economy

, others believe that reserving that

money

is more beneficial for the

economy

. In

this

essay, we will analyse both sides of the view and will eventually conclude that in my opinion, I feel reserving

money

is far more crucial in the long run. On the one hand, a significant number of communities think that spending

money

is a great way for the betterment of the

economy

. Indeed, If a nation will spend more funds on goods and services, Companies will be forced to manufacture more products and will only benefit a country’s

economy

. In India,

for instance

, Inhabitants have started purchasing new lavish cars in the 21st century. It has helped them to revive from the economic crisis due to the recession in early 2000. For the above reason, the spending power of people will definitely prosper the

economy

.

On the other hand

, Others think that saving

money

is a better alternative. To illustrate, saving

money

in both formal and informal ways is only going to benefit a country by building a liquid cash reserve that can be used during crises

such

as pandemics and recessions. To illustrate,

Although

the USA's

economy

severely struggled during the recession in 2008 because of its huge dependency on debts, at the same time countries like India and Pakistan had the least effect on their

economy

due to rich informal income.

Therefore

,

This

way of saving generates a robust

economy

. To summarise, Even though a lot of the community feel that being a free-spender is crucial for the needed boost of the

economy

, others have an opinion that saving salary is a better idea. Personally, in my opinion, I firmly believe that reserving wealth is a far better approach as it will be sustainable for a long period of time and will provide cushioning during difficult times ahead.