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Eventually either one The Supremes Abbey road walk Christmas shirt, sweater of two things happens to the money being used as spending. It will have been saved by an income earner, in which case it will count as part of total savings, or some income earner will still possess it since they have not yet had time to spend it yet. In either case, all of that money, that was first put into spending as investment spending will still exist. It will exist as owned by either the savers, or the people who didn’t have time spend it yet. In either case since the money is held by some who has not spent if again yet, it is considered as income not spent, meaning it is income saved. We are not just saying, in this model, that the amount of savings equals the amount of investment, we are actually saying that the money we are calling saved at the end of the time period is the SAME MONEY that was put into the spending as Investment in the current time period.

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It is The Supremes Abbey road walk Christmas shirt, sweater same money put into spending as investment, the same money used for any further (consumption) spending. It is the same money that was used for ALL the spending done in this time period. Another way to say this is that in the process of the economic activity represented by this spending, the actual money was neither created nor destroyed. The money used for spending was preserved. What we are calling savings is none other than the “preservation” of the investment money. In my book, Enlightened Capitalism: A Keynes Primer, I address how we can legitimately classify money used in a given amount of spending as “the same money”.