People unwilling or unable to spend cash leads to fewer businesses being formed. This should be obvious. Therefore, anything which loosens the purse strings sh

People unwilling or unable to spend cash leads to fewer businesses being formed. This should be obvious. Therefore, anything which loosens the purse strings should lead to more business activity. More business activity will lead to better resource allocation and hiring, more auxiliary services cropping up to support novel needs. All this will lead to fewer poor people. Now, reverse the arrow. If it were to become harder and harder to spend money, more and more people would fall into poverty.