Saving is both virtual as well as vice.explain how? identify the concept being used here

Dear Student

I would like to correct your question in first place. 
"Saving is both a virtue and a Vice"
Now the answer to your question:
According to Keynes, Saving is a Private Virtue but a Public Vice.
Saving is said to be a virtue because when a person save more money by decrease his spending (by consuming less) he accumulates a surplus. This surplus can be used in the welfare of the community as a whole. The more the savings the more is the capital formation and thus more development can happen in an economy as a whole. Saving is an inevitable part of an Economy and a major source of Capital formation. But some economist have also argued that increased savings are not a virtue for the nation as a whole because as savings increase consumption decreases and thus reducing demand for goods and services.
According to Keynes, Saving is a Private Virtue but a Public Vice.
Saving is a Public Vice as per Keynes because when the aggregate savings in the community increases by reducing consumption by the community it implies a reduction in aggregate demand for consumption goods and thus will also lower down the profit levels. 
In short run yes savings are a virtue but for long run it can impact an economy in a negative way.
The concept discussed here is The Paradox of Thrift.

-Regards

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