Answer
When Americans save more of their income, it then leads to more spending on equipment and factories. There will also be an increase in production and productivity, because the same number of employees will possess better and newer equipment to work with.
The benefits that are derived from higher productivity will go to the workers, who will be paid more since they're producing more, and the factory owners. They get higher incomes at the cost of buying fewer goods.
Work Step by Step
When there is more money to spend on new factories and machinery, there will be an increase in productivity because it makes their jobs a lot easier and efficient. Thus, employees get paid more and the bosses have an increase in revenue.
