Now one assumes that each time a person gets income as a recipient of investment spending or Baby Yoda hug Oklahoma Sooners shirt, they hold on to a chunk of it, they don’t re-spend it all, in the current time period. Eventually either one 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 to spend it yet.
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In either case since the money is held by someone who has not spent it again Baby Yoda hug Oklahoma Sooners shirt, it is considered as income not spent, meaning it is income saved. This is the same as saying all the money being used for spending is money used for investment spending, 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.