Is Saving an Indicator of Confidence?

Economic theory, Keynesianism in particular, has long sought to explain the tenuous link between trust and savings. It is tempting to conclude that a society that turns away from saving has lost faith in the future. Faced with the multiplication of short-term signals and incentives, the preservation of a large share of capital in long-term instruments could demonstrate the faith of households in a stable and healthy economy. Is saving a reliable indicator of households’ confidence or is it simply an instrument anchored in our cultural heritage?

The relationship between confidence and savings also seems to depend on several factors. On the one hand, the choice of pension system made by the states could explain some differences: are the pay-as-you-go pension systems more conducive to confidence in the future than those by capitalization? On the other hand, inequalities in saving could affect the link between saving and trust: does the absolute impossibility of saving of the most vulnerable households erode the latter’s confidence in the future?