8 Band Essay Sample Answer
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.
Whether the citizens of a country should spend money or whether it would be more beneficial for its economy to save, is a debatable issue that has sparked a great deal of controversy. It is true that consumer spending stimulates the economy. However, I am inclined to believe that saving money is essential for a country’s economy.
Few would dispute that consumer spending can be considered the driving force behind an economy. The justification for increased consumer spending derives from the “circular flow of economy”. Therefore, the spending of one person becomes the earning of another. Moreover, increased spending leads to new business openings in order to cope with increased customer demand. In Switzerland, for instance, the employers of companies that operate from nine to five are not allowed to work after five so that people can go shopping,
to restaurants or do other activities, in order to stimulate the economy.
Nonetheless, I hold the conviction that saving money can save an economy and create prosperity for both citizens and the country. To begin with, if spending is based on credit, it will result in increased debt for a country, and citizens might find themselves in debt and with financial problems too. Particularly, modern-day economists believe that saving money can save a country, especially in an economic recession, like the worldwide financial crisis of 2008, On the grounds that fewer businesses would have to close, as they wouldn’t have to cope up with debt, and consequently, fewer people would have lost their jobs.
To recapitulate, despite the benefits that consumer spending might present for a country’s economy, I tend to believe that to a certain extent, saving is more important for the prosperity of a country’s economy and for its citizens too.