Drop in Savings (not only mine!!!!)

In the recent past, I hv read so many articles on the drop in public tendency towards Savings. Mostly it was happening in Rich countries. Those countries residents were riding heavily on the credit boom. So, they might not hv bothered about savings. But now this trend is being observed in the developing world like India as well.

This may be good in the short term, since it gives a positive industry growth. But, will the amt spent - come out for public circulation in some form (for future spending) or will there be a chance of hoarding by some industrial bigwigs alone? Pl.note that due to heavy dependence on credits, Americans owe a lot to China & Japan who owns so much of bonds & assets in US.