The Cantillon Effect and the “K-Shaped” Economy
Even in a world of gold, silver, and costly mining, whoever got the new money first still came out ahead. Jeffrey Degner on why hard money doesn't repeal the Cantillon effect, and why fiat makes it far worse.
Source: Mises Institute
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DW NOTE
The Cantillon effect hasn't changed in three centuries — only the scale has. When the Fed prints, asset holders get richer before workers' wages catch up, if they ever do. The "K-shaped recovery" is just the polite term for a wealth transfer that happens by design every time new money enters through bank reserves and primary dealers rather than payroll deposits.