TLDR it up it seems to encourage consumption (good but only to a limit) and discourage lending your money to others to invest (bad).

There is no such thing as excessive savings. As long as you don't have the money under the pillow but on a bank account or in bonds or stock the money goes back into the economy. You let others take a risk with your money and if they succeed you both get richer. Hopefully they took a risk to try to produce more stuff instead of day trading.

Does this cap include assets? (Eg stocks, bonds, property, machinery ). If it does you have to set it very high to allow whatever size company you deem is max to be viable. Then you don't get many people spending or you don't get any large scale operations. The reason food is cheap is because one guy with a huge expensive tractor owning a lot of land can grow a lot more than he eats. The reason you have a cheap phone is because there is a billion dollar factory making tens of thousands of the things.

If it does not then it's stupidly easy to avoid it by buying assets that make money. This is why rich people get richer. They don't have a lot of money, they have a lot of assets that make them money.

Are you allowed to deduct debt? You can't borrow money to buy a tractor and land to grow food if you're not.

The government can do all the large scale stuff but I'm old enough to remember which side of the Berlin wall the scratchmarks were on.