***>Could Social Credit cause inflation and not relieve poverty? <***
No, social credit reduces inflation at the same time it relieves poverty. Keep in mind that presently there is a trade-off between inflation and stagnation (employment of labor and resources)--the message of the Phillip's Curve. The monetary/fiscal authorities presently chart a course mid-way between the two extremes so we have some inflation and some stagnation but because it is a mid-course we have relative stability. It is a most unstable equilibrium.
The theorem is that income is falling in respect to the costs of production (the flow of "price values") with labor displacement.
Let's say that the flow of loans (money) is held as a matter of policy to be proportionate to increasing "productivity" such that money and productivity are increasing proportionately so there is zero inflation. Income then would be falling according to the theorem in respect to both the flow of loans and productivity leading to stagnation. Social credit would augment that income so that consumer income plus the social credits would be increasing proportionately to the flow of loans and increasing productivity, enabling the full utilization of capacity with zero inflation. The equilibrium is still unstable but is rationally controlled for maximum technical efficiency.
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