Wouldn’t the economy be worse if everyone invested their disposable income?

A question to anyone in finance or anyone that has an opinion on the matter. We hear online that one of the best things you can do is “invest” your money in the stock market. But hypothetically if everyone invested their disposable income (everything left after mortgages, bill, etc), wouldn’t that make the economy worse because no one is spending money buying the products produced by the companies in the stock market? So the only reason the advice of putting your money in the stock market works is because only a small minority of the population do it and everyone else just spend their money on buying the products and services. A follow up question is, wouldn’t then the economy be in a better place if instead of putting your money in the stock market, you just open up your own business? Any articles or books on the subject are welcome 🙂

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