Credit creation directly and proportionally drives changes in people’s incomes

Evidence

“So we reach the conclusion that an acceleration or retardation of the creation of credit means an equal increase or decrease in people’s incomes” (Hawtrey 1919a, 40). And again: “Infl ation consists in the spread of the infection of high prices through production to the consumers’ income and thus to the consumers’ outlay” (ibid., 114). — Clara E. Mattei, The Capital Order, 1690

Categorization

• DEFINE: Defines inflation in Hawtrean terms as the infection of high prices spreading through production into consumer income and spending.
• XREF: connects to: Higher-status people receive more credit for identical work — W. David Marx, Status and Culture: How Our Desire for…, 68