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Another Lavish gem.
In essence, the Cantillon Effect describes how new money entering the economy benefits those who are closest to the source of this money—typically financiers and investors—before it affects the wider economy.
I wholeheartedly agree. This is why it takes time for money to trickle down into the real economy, and by the time it does, it's already too late and much less.
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Controversial take - this could still continue and may not unwind - even without the Cantillon effect in place.
Ahhha! That's why they like ke to be the biggest person in state politics. Amazing!
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I was trying to explain the cantillon effect to my mother the other day. 😄
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This is why strippers who dance in clubs on Wall Street see their incomes soar while coal miners in West Virginia are hard hit.
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Thats why the politicians make so much money! You have to remember, everyone takes a piece of the pie before it reaches you. So your slice could be very small compared to the pie it started out as! Food for thought.
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Important concept to grasp!
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If we could only snap our fingers and instantly have everyone understand the Cantillon effect.
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before it affects the wider economy.
it could also be that by that time, inflation comes hard to compensate and leave the wider economy unchanged or worse.
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Yes, it is true. The people who are closest source to the money. Get the most benifit. For example our Satoshi is the richest Bitcoiner.
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