THE CANTILLON EFFECT

Post #12

Richard Cantillon was a French Irish economist in the 18th century who wrote about money. The Cantillon Effect recognizes that the people who own the most assets benefit first from low-interest rates, and indebted people benefit the least. Whereas the wealthy invest the money, the low interest encourages the poor to borrow. Persons who profit the most from money creation can access the cash at the beginning, such as the federal government, wealthy individuals, corporations, and big banks. The Cantillon Effect causes a redistribution of income from the middle class to the rich, enabling a class of cantillonairs. The ghouls of financialization have made us victims of low interest leading to economic vandalism, causing a fraud cycle. We have become workers on a multinational plantation living in a two-tier economy. America is one nation with two systems.

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Published by Kenneth E. Long

Author, college professor of economics, swimming and tennis enthusiast

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