One must produce more to consume more.  A portion of your consumption goods must be saved up to consume while you develop a roundabout process.  Saving is required.  Otherwise, the production goods will never come into existence.  Saving is required if anyone wants to improve their condition.  The development of a new production good can lead to more consumer goods.  Thus, more consumer goods can be saved, and the process continues.

The process of saving must continue.  Capital will be consumed if it doesn’t.  Operation of the current production goods may continue.  They don’t wear out overnight.  However, if there isn’t enough savings, the capital that is in existence will be consumed.  There won’t be enough to make new production goods nor even service them.  At that point, the standard of living can’t be maintained, it must decline.

The process of saving can never stop.  Progress will stop if it is.  We’re better off than previous generations because we have what they’ve saved.  It’s not because we’re smarter or more industrious.  The opposite might be true.  Our standard of living is as high as it is because they have equipped us to do so.  Consuming capital will do away with what they have left for us.  Future generations will not be so lucky.

Sacrifice is required for any production good.  It’s a temporary situation that will improve everyone’s standard of living in the future.  People don’t get rich by consuming.  This happens by saving.  That savings allows them to develop something that will improve our condition.  It’s a sacrifice to reap the rewards later.  This can: shorten the period of production, increase the output, create new products, or some combination.  We’re all better off.

We all want goods sooner than later.  Politicians may advocate spending at the current time.  This will give a temporary boost to the economy.  They’re more likely to get reelected.  The short term boost may appear beneficial at first.  This will harm savings and lead to capital consumption.  “It is the aim of good government to stimulate production, of bad government to encourage consumption.”

Reference

Ludwig von Mises; Human Action