If I save more money, will I kill our economy? – “Money still talks, apparently. I just happen to believe it speaks loudest when people are in control of it.” This topic made me think a little about alternative stimulus. What if interest on CDs was made tax-free while requiring banks to de-lever gradually? It may not have made a huge difference, but it may have created willing investors (depositors) in the banks’ survival.
Certainly, savings could be used for emergencies and would help float people in bad times.