Cantillon Effect 101: The Top 0.1% Have Seen Their Wealth Jump by 1,000% Since 1990, While the Bottom 50% Has Lost 25% of Its Wealth.
This widespread impoverishment is not inevitable, and a solution is within everyone's reach.
Have you ever heard of the Cantillon Effect?
I've talked about it in the past, but I'll briefly define the concept as a preamble.
According to the Cantillon Effect theory, an injection of money into the economy exerts a progressive and differentiated effect on prices as the money spreads through trade from the point at which it is injected.
The trickle-down theory thus only benefits the poorest too late, while the richest have already been able to line their pockets with this injection of money decided by governments.
It's interesting to recall this nearly 300-year-old concept when the assets of the richest 0.1% have tripled since 2009.
If the wealth of the richest 0.1% had kept pace with inflation, their total assets would be $4,300 billion today, rather than $20,000 billion today!
This is no coincidence, given that the Fed opened the floodgates to easy money at this very moment.
This phenomenon has also benefited the wealth of the top 1%. Almost free credit is a godsend if you're first in line and no one else gets the same interest rate. But for ordinary people, it's a different story.
At the opposite end of the spectrum, you have what the Cantillon Effect theory tells you about: the poorest 50% of American households have become enormously poorer.
While the Fed is likely to resume its quantitative easing monetary policy in 2024, there is a direct link between this type of policy and the widespread impoverishment of the poorest, i.e. the vast majority of American citizens.
The rich benefit from the lowest interest rates and unlimited credit. This allows them to buy up the most productive assets and get richer and richer, benefiting from the flaws and injustices of the current system.
Meanwhile, the people lose 25% of their wealth in the space of a few months, as shown in the graph above.
Faced with this distressing constant, you might ask: what can be done to secure the fruits of one's labor outside the current flawed and unfixable system?
That's where I think Bitcoin comes in.
Rather than trying to convince you that Bitcoin is a game-changer for mankind, I'm giving you the chance to form your own opinion and take back the power over your life by suggesting that you discover my book “The Truth About Bitcoin”:
This is the true meaning of the Bitcoin revolution.
After reading this book, you'll be able to decide for yourself whether you want to stay stuck in the current system that's making you poorer by the day, or whether you want to change your future for the better.
It's up to you!
Are The Simpsons Predicting the Future of Cryptocurrency?
Well, there is no theory of trickle down economics, the idea was first proposed under FDR in the 30s. Consistent with his aristocratic roots, the only thing that trickle down to the public was the pain.