How has comsuming less good for the economy?

An article entitled ‘A Return to Thrift’ by Geoff Colvin, emphasizes the importance of being thrifty in today’s economic turmoil. Over extravagant spending, especially in housing resulted to debt and uncertainty in economic growth of the country. Banks, are far more less willing to be open to small savers as pointed in the article. Colvin further contends, a solution, but can still be considered a far less ultimate key to the reduction, is simply to be thrifty with ones money. Being able to change the spending behaviour of people will more likely to rise above from the country’s problem. One way is through Environmentalism. Aside from having a greener outcome, it has an effect of making people to spend less by recycling, reusing and having a better decision when it comes to spending on environmental products. As optimistic as it may sound, the solution proposed has its own flaw. Capitalism is ever present in our world, where people spend to receive self-satisfaction, however this also conflicts the idea of self sacrifice, and being thrifty. In order for the proposed solution to work, it really depends on how we are going to embrace the idea to be thrifty.
Is consuming less, good for the economy or wouldn’t less consumer spending also not be good in rebuilding the economy?