If he did then additional tax would occur from his spending and that induced downstream in the spending chain which would eliminate the debt that was previously his savings.
Debt and savings are two sides of the same coin. If the savings disappear via spending and taxing then so does the debt.
Remember money doesn’t stop at its first use. Spending and taxing work like a stone skipping across a pond. Saving and debt is like videoing that skip and pressing pause half way through. Once you unpause by spending the savings the stone skip continues.
What you’ll note is that the stone always sinks - taxation will always match spending in the long run.
I don’t agree that spending money always results in valuable, transferable assets. It isn’t hard to think up counter-examples: under-utilised infrastructure projects, projects that become a maintenance liability, many social and health programs, etc.
Debt and savings are two sides of the same coin. If the savings disappear via spending and taxing then so does the debt.
Remember money doesn’t stop at its first use. Spending and taxing work like a stone skipping across a pond. Saving and debt is like videoing that skip and pressing pause half way through. Once you unpause by spending the savings the stone skip continues.
What you’ll note is that the stone always sinks - taxation will always match spending in the long run.