More public debt == more private savings.
I think what you're trying to say is: more public debt = more money in circulation.
Once people have more money, then they will spend more, employment increases, etc.
This is where you're mixing it up. Savings means savings, not spending. You're right, if people have more money, they typically spend more money... so how are you coming to the conclusion that if they have more money, they'll automatically save more money? This is why I said what I said above.
The savings rate has more to do with the rate of inflation and interest rates. In a deflationary environment, people will spend less money (i.e. save more money), because spending is punished. In an inflationary environment, people will spend more money (i.e. save less money) because saving money is punished.
And when someone says they want to reduce the National Debt, what they are really saying is that they want to reduce your savings.
No, what they're saying is they want to reduce the national debt. National debt and savings rates have no connection.
