Why save???
bye
it is an interesting question.
Suppose it comes down to risk adjusted rewards.
I agree capital should be kept active. It is better to have it 'working' to improve the supply of goods and services, rather than just sitting horded in the perth mint as gold or under the bed as cash.
The paradox about saving is that savers are subversively considered too ignorant to know how to invest their money towards improving the supply of goods and services. Their savings then are lent to 'smarter' people to this end, and the smarter profit.
What happens when everyone wants to invest directly, and not lend their savings via banks to others? Do we end up with a more efficient market economy?
Hard to know.
What is for sure though, the more Aussies want to invest directly, rather than save, leveraging into assets relies on borrowing foreign funds.
And that exposes us to the risk of foreign funds becoming less available or more costly.