Ric Holt says: " 1) It's true that higher savings leads to faster growth, but only in the short run. Let's assume that the classical model is correct, which Keynes didn't, and that equilibrium in the loanable funds market through adjustments of real interest rates leads to investment equal to savings. So an increase in savings will lead to an increase in investment and spending by firms for new capital. But this will not continue indefinitely. Capital wears out and so capital stock will adjust itself to the point where savings equal depreciation." I suggest we come out this muddle. Saving is a FLOW. From this flow investors acquire the funds to buy capital goods which depreciate, physically in the process of production. That production generates new income, part of which is saved and made available for investors to continue buying more producer's goods. Some of such purchases are recorded as replacement "capital" or depreciation. Thus the claim that saving is important for growth only in the short run lacks validity. By the way, my own copy of the General Theory has numerous comments on the margins and it's "falling apart" from repeated use. I think I know the real Keynes fairly well. James Ahiakpor CSUH, Hayward