I agree central banks have had interest rates far too low thus causing lots of government debt because politicians can't help themselves but spend and buy votes to retain power/voter. I also agree we should withdraw from the UN so we get our soverinty back.
I am afraid that governments do not act like we individuals do. Saving money maybe a virtue at the individual level, but what would happen if everybody started saving money at the same time?
The lowering of interest rates was for the purpose of stimulating private consumption and investment, which was not enough even at zero interest rate, forcing governments to borrow and consume more. In a market economy the expenditure of a person is the income of another.
"The surge in savings following the 2008-2009 Global Crisis and the recent pandemic have rekindled the interest of economists and policymakers in the paradox of thrift, formulated by Keynes in the 1930s. Subsequent research on the Great Depression of the 1930s, however, has not addressed the link between precautionary savings and growth. Using data on deposits in savings institutions of 22 countries, this column studies the fate of savings during the Great Depression and shows that Keynes' intuition was right. Banking crises had an impact on economic growth not only through the direct lending channel, but also indirectly through an increase in precautionary savings. This bears important lessons for today."
For those with a keen interest in economics why not trying to have a go at the IS-LM model? According to Krugman, it is elementary.
"Most spectacularly, IS-LM turns out to be very useful for thinking about extreme conditions like the present, in which private demand has fallen so far that the economy remains depressed even AT ZERO INTEREST RATE."
