How the Human Credit escapes dollar-denominated traps.
Companion to: Section 6: Where the Money Comes From
Referenced from: Whitepaper Sections 3 and 13
Traditional support programs and UBI are denominated in dollars. If inflation erodes the dollar, benefits buy less. Government must increase payments to compensate, potentially creating an inflationary spiral.
Human Credit value is anchored to service delivery outcomes, not to a fixed dollar amount. Congress sets credit values annually based on actual costs. If inflation doubles the cost of housing, the housing-related credit value adjusts. If AI drives down costs, credit values can adjust downward while purchasing power remains stable.
The system is implicitly indexed to reality. Compare this to Social Security's COLA adjustments, which are political fights, always lag actual inflation, and leave recipients with reduced purchasing power during high-inflation years.
AI is expected to drive down the cost of goods and services over time—potentially dramatically. This is productivity-driven disinflation, not the harmful deflation that creates debt spirals.
Within the Human Credit system, this is a stimulus: Provider costs decrease (they can help more people per credit dollar). The real value of each credit increases. Credit values may decrease in nominal terms while purchasing power increases. The system automatically captures AI's productivity gains and distributes them.
In a scenario where the dollar loses significant value, traditional benefit programs face crisis. Human Credits, because they are claims on service delivery rather than fixed dollar amounts, continue functioning. Corporations still owe taxes on their profits (in whatever dollars are worth). Credits still buy services. The Human Credit economy operates as a parallel stable-value system anchored to the tax base and real service delivery.