Ah, I guess that makes sense but I still don't see how taking more deductions (spending) could lead to the goal of saving unless that spending was and investment like real estate.
Whoops I think I was lost in the context. I was mostly remarking on this dynamic in terms of businesses, not individuals. The dynamic doesn't work exactly for individuals (because individuals don't have "profit"), but tax incentives still rule the day in the individual side too (e.g. 1031 exchanges, 401ks, mortgage interest deduction, cap gains deductions on real estate, etc).