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.
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85 sats \ 0 replies \ @0xbitcoiner 12 May
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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85 sats \ 1 reply \ @Kontext 12 May
Visual representation:
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0 sats \ 0 replies \ @davidw 12 May
Controversial take - this could still continue and may not unwind - even without the Cantillon effect in place.
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75 sats \ 0 replies \ @Coinsreporter 12 May
Ahhha! That's why they like ke to be the biggest person in state politics. Amazing!
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75 sats \ 0 replies \ @cristaiji 12 May
I was trying to explain the cantillon effect to my mother the other day. 😄
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54 sats \ 0 replies \ @FRNdisrespector 13 May
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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54 sats \ 0 replies \ @Satosora 13 May
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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54 sats \ 0 replies \ @quark 12 May
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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54 sats \ 0 replies \ @TNStacker 12 May
Important concept to grasp!
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54 sats \ 0 replies \ @grayruby 12 May
If we could only snap our fingers and instantly have everyone understand the Cantillon effect.
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21 sats \ 0 replies \ @BitcoinAbhi 12 May
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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