Are savings necessary for economic growth? So, I've had this confusion for a long time. We all know how spending is absolutely vital for economic growth. However, at the same time, are savings necessary too?

My initial opinion was "no". In a very particular argument, someone argued with me that "since the money that goes into the companies as investment is nothing but the savings money,savings are important too"

I feel that if companies are getting all they want from direct profits (consumer spending), say with 100% consumer spending, they wouldn't need investments.

Would I be right in my argument? Or am I wrong?
I don't know if you're arguing a theoretical framework or whether saving is important for real economic growth. In theory a special case where all consumers would spend 100 % (MPC=1) of their income is possible to argue - the framework would be loaded with questions - it might, for example, make banks redundant.

In basic economic models savings is often considered equal to investment (you see a variation of S=I in many macroeconomic models) which means that all saved income is used for investment and therefore expected to expand the economy for future periods. In real life the relationship isn't quite this straightforward, but the basic idea still holds.