Which is why the main control is interest rate, if you get high interest you save more and low interest you spend more.
Interest rate have little to do with spending - they are a tool to control borrowing (and inflationary investment). The economic function of interest rates nowadays is to drive credit creation - the ability for the financial sector to create wealth by loaning out the same dollar many times.
High interest rates remove the ability for people to borrow but attract external investment. This can be a useful technique to draw foreign investment into your country.
The quoted point does have value for people with variable rate mortgages. Since interest is a large part of their monthly payment and often people borrow up to 80% of the value of their home, movement in interest rates (not matched with movements in income) will cause - often significant - changes in movement in available cash which leads to the spend/save more scenario. However very little economic academic debate is focussed on the individual hardships of the poor. Economics in general is more focussed on the macro level as constantly demonstrated by the ineptness of the acts of politicians.
RE: The article:
In Australia we have a statistical unemployment issue as the many factors can stop you being counted as unemployed (for example not being able to arrange childcare or not being available for work because you are in a course)
In Australia there is a very very very large service industry that feeds on the bottom dwellers of the recruitment sector by getting people into government sponsored courses. They get payments from the government and from the training organisation (who also get payments from the course attendee).
So basically you have millions of government/taxation dollars to fund the apparatus around one aspect of welfare - with the statistical upshoot of showing lower unemployment rates to voters.
If a Dutch town is doing away with the machine that keeps the welfare recipients under the watchful eye of the government to justify their payments in the eyes of voters then I can't help thinking that there is more money being saved and more to go into useful things.
Personally I would want all education and healthcare to be free - an educated and well society will achieve far more than a unemployable one that is ill and most likely broke.