2 comments

• Comment Link Monday, 11 October 2021 01:33 posted by Oliver

  Hello there! Yes, according to Douglas Social Credit, purchasing power declines over time because the debt-burden erodes the purchasing power of consumer incomes both directly (through the necessity of repaying consumer debts plus interest) and indirectly (through increased charges on goods and services). This then causes employees to ask for wage/salary increases to maintain the standard of living. These increases eventually filter into prices to raise them correspondingly. This causes a wage-price spiral. So cost-push inflation caused by debt is the primary cause of the continual inflation we have seen over time. This is explained in episode #18: https://www.youtube.com/watch?v=K9xYDK64GAc&t= Balance the price system with sufficient debt-free consumer credit incomes and cost-push inflation should be neutralized.
• Comment Link Tuesday, 28 September 2021 18:27 posted by Anonymous

  A general question re currency and social credit: The financial value of currency declines over time i.e. a dollar today simple cannot purchase what it could,say, 100 years ago. Why does the purchasing power of currency decline over time? Can this be explained by the Douglas A + B social credit theorem?
  
  Many thanks.