The point is to encourage the increase of the overall level of wealth, i.e. have people on average be wealthier.
Your prescription is for the opposite, i.e. keeping people poor.
Distinguish between actions which create wealth, investment, and actions which consume wealth, hence the word consumption.
Any savings beyond a little cash in a mattress (i.e. real savings) is invested. Investments are what lead to wealth creation. For example, money is lent to a business to expand, equipment is purchased to make people more efficient, people are hired to work in an industry to create products or services. All of that is ultimately paid for from someone's savings.
When someone consumes a car, or food, or a shirt, or whatever, those resources are what don't return to the economy. Even if something is re-sold, it's typically worth less than it was purchased for, i.e. part was consumed and that part of the stock of wealth was destroyed.