One contributor to too much saving is too large deficits and/or insufficient taxation. The U.S. may be experiencing both causes simultaneously. Interestingly, the Biden Tax gurus may agree with you. What they are proposing are modest tax revenue increases levied on high earners and corporate earnings. Taxing directly reduces deficits, so it provides a double whammy approach to too high a savings rate. It seems taxing aimed at high incomes has social benefits as well, which i leave to the imagination. I am strongly in favor of the Biden tax plan as I think it is just what Dr. Economy should prescribe for the current ailment. It will be coupled with large infrastructure projects.
