Demand-side economists treat saving as a leakage from potential spending.
In the circular flow model,saving is siphoned away from spending,though it comes back as investment.

Question

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Demand-side economists believe that saving is a leakage from the potential spending because it reduces the amount of money that is available to be spent in the economy. However, the savings are returned to the economy in the form of investment, which ultimately contributes to economic growth. This concept is represented in the circular flow model where savings are shown as diverted from spending but come back as investment.

Demand-Side Economists Treat Saving as a Leakage from Potential Spending