This is the same as saying all the money being used for spending is I’m done being an Occupational therapist I’m going to Disney shirt, and all of that money still exists “in someone’s pocket” as savings, at the end of the given time period. 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. It is the 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.
I’m done being an Occupational therapist I’m going to Disney shirt, hoodie, sweater and tank top
Best I’m done being an Occupational therapist I’m going to Disney shirt
So it is not just true that the amount of money saved is equal to the money used for I’m done being an Occupational therapist I’m going to Disney shirt, We are saying this is true because the money saved is the same money!!! as the money invested. 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.