Uploaded August 2024 | Updated September 2026, 3 weeks ago
The Cantillon effect says that when new money is printed it goes first to the people and industries closest to the money supply Richard Cantillon watched these dynamics play out in the 18th century in the South Sea Bubble the world's first financial crash and the Mississippi bubble a scheme in France that started a frenzy and ultimately a financial collapse More recently consider what happened during COVID with those twelve hundred dollar stimulus deposits By the time normal folks got that money according to the Cantillon effect inflation was already taking effect Gas prices for example had risen But if you were a big business in the financial sector you might have gotten to fill up your executives' limos and private jets before gas prices went up
LEARN LIBERTY:
Your resource for exploring the ideas of a free society. We tackle big questions about what makes a society free or prosperous and how we can improve the world we live in. Watch more at learnliberty.org/.
The Cantillon effect says that when new money is printed it goes first to the people and industries closest to the money supply Richard Cantillon watched these dynamics play out in the 18th century in the South Sea Bubble the world's first financial crash and the Mississippi bubble a scheme in France that started a frenzy and ultimately a financial collapse More recently consider what happened during COVID with those twelve hundred dollar stimulus deposits By the time normal folks got that money according to the Cantillon effect inflation was already taking effect Gas prices for example had risen But if you were a big business in the financial sector you might have gotten to fill up your executives' limos and private jets before gas prices went up
LEARN LIBERTY:
Your resource for exploring the ideas of a free society. We tackle big questions about what makes a society free or prosperous and how we can improve the world we live in. Watch more at learnliberty.org/.
