The above would be true, if the only thing driving the economy was short term spending. But it's not. The economy needs "retained capital". With no retained capital, there would be no factories, malls, or hard products being produced.
The question is how much capital is needed. We seem to have too much capital right now, enough excess capital to have built repeated asset bubbles in the stock market, real estate and the commodity markets.
There has to be a balance between the money that rewards capital, profits, and the money that rewards labor, wages. Wages make up most of the effective demand in the economy. Without demand no one will invest in new production facilities, the only type of investment that will produce jobs and high wages. The labor share of GDP has dropped by more than 8% of GDP in the last thirty five years, since we intentionally started suppressing wages. 8% of a 17 trillion dollar economy is more than a 1.36 trillion dollars a year that we are intentionally reducing wages by to increase profits. It is pretty much a trillion dollars in lower demand in the economy. And it will be another trillion dollars a year next year. After a while it is going to add up to real money.
And the money is not going into investments in the economy, it is going into the financial markets where it is building asset bubbles that destabilize the economy, that actually hurt the economy.