The Cantillon Effect, described in 1730, explains more about modern inequality than any policy debate.

When new money enters an economy, it does not reach everyone simultaneously. Those closest to the money creation — banks, large institutions, government contractors — get access first, at pre-inflation prices.

By the time the money reaches wages and consumer accounts, prices have already adjusted upward. The purchasing power transfer is complete before most people know it happened.

This is not a conspiracy. It is the mechanical consequence of how money enters circulation. Understanding it changes how you read every central bank announcement, every stimulus package, every bailout.

The question is not whether this happens. It is who sits closest to the spigot.

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