Originally Posted by NE_Pilot

Nothing can be consumed that isn't first produced (outside of bare subsistence), and production isn't possible without savings. Savings is set by individual time preference, which aggregates into a price that we call interest. Distortions occur when a central authority (the Fed) intervenes to lower or raise the interest rate (or when banks are allowed to create money through fractional reserve banking), simulating a change in time preference that has not taken place. This leads to a mis-allocation of resources and capital consumption, it creates an illusion of savings that doesn't exist and results in a recession/depression. You cannot spend your way out of a recession/depression.