[Houshalter]

>are you honestly suggesting that reductions in consumption and spending are favorable to nation's economy?

Yes absolutely. All the economy does is just allocate resources. If some area of the economy is consuming more, than that is coming at the expense of other areas of the economy. Likewise if spending in one area is cut, that leaves resources available for other things.

That's all supply and demand is. Prices increase or decrease with demand until the supply is stable.

[JumpCrisscross]

Economics, like physics, scales messily. If the whole world decided to save everything for one year starting today, the economy would free fall. Since nobody is consuming, nobody need produce. Factories grind to a halt and deteriorate, social bonds and casual knowledge fade, and the world returns a year later materially worse off.

[Houshalter]

Yes and it should. The economy isn't a static thing. It should adapt based on demand. If suddenly demand went down, then prices would fall until they were low enough that the remaining supply can be sold off.