The Cantillon Effect is the one idea the political class cannot afford for you to understand.
New money, Cantillon observed, does not enter the economy uniformly. It enters at a specific point. It enters through the hands of a specific set of people first. And those people, because they hold the new money before prices have adjusted higher, are able to purchase real goods at old prices with new money.
New money benefits its first recipients at the expense of its last recipients.
Inflation isn't merely a tax. Inflation is a transfer — from the people farthest from the printing press to the people closest to it.
It is how the political class thrives.
And, when the people eventually understand this is how they've been enslaved, financially, there will be a revolution.
https://t.co/HoAdZgjWv2
I would argue that the deterioration in the purchasing power of the US$ is more like 8% annually. and that the numbers " crossed years ago.
Compare prices today, compared to 2020, and you will be horrified.
@jenstilmanydots They blame everything and everyone except the federal government policies for food inflation. Government food terminals and hubs? What could go wrong
@Martyupnorth BMO used to recognize that you were long-standing customer. Now they are horrible, head off is just crunch‘s numbers and runs wrist, models and changes your account without asking.
I still can't get over the fact that the Canadian government is not ashamed by the fact that they are giving people money for groceries. In any normal country, this would be an abject admission of total failure.
⭐️THIS is a GREAT read ⭐️
I’m worn out hearing people moan, “Our grandparents could buy a house on one paycheck, but now we can’t even afford rent on two!”
Yeah, maybe because Grandma wasn’t dropping half her income on $14 iced lattes and avocado toast shaped like art projects. Back then, if they wanted coffee, they boiled it at home in a dented pot. It tasted like burnt rubber and regret — but it woke you up and cleaned your pipes.
And Grandma wasn’t “out to brunch.” You think she had time for mimosas and hashtags? She was making something called whatever’s left in the fridge and feeding six people with it.
Don’t even start with Uber Eats. You think Grandpa was out here paying $38 to have a burger delivered three blocks away? Please. He grilled mystery meat on a rusted barbecue, and everyone called it dinner.
Now people cry about being broke while sitting in a house full of gadgets. Two SUVs in the driveway, six streaming services, three air fryers, and matching tattoos that cost more than their light bill. You think Grandpa had a tattoo? He did. It said “Korea, 1951,” and it came with trauma, not Instagram likes.
And the kids—Lord help us. “We can’t make ends meet, but Brayden needs the new iPhone!” No, he doesn’t. You’re handing an $1100 device to a child who still eats crayons and forgets to flush.
When we were kids, there was one phone. It hung on the wall like a family relic. The cord stretched just far enough for you to whisper secrets before someone yelled, “Get off, I need to make a call!” And guess what? We lived.
The TV? One. In the living room. With three channels and a dial that clicked like a safe. And if Dad wanted to watch bowling, you were a fan of bowling, end of story.
Now there’s a flat screen in every room, the baby’s got an iPad, the dog’s got a camera, and everyone’s wondering why they can’t afford rent.
Because you’re living like rock stars on retail salaries, that’s why.
Grandpa wasn’t leasing Teslas or buying $12 smoothies called “Green Zen Awakening.” He drove a truck that coughed smoke, rattled like a storm, and smelled like oil and hard work.
They lived within their means. Whatever Grandpa brought home on Friday — that’s what they had. They weren’t keeping up with the Joneses; they were keeping the lights on.
So yeah, Grandpa bought a house on one salary. But he also didn’t have a gym membership, three delivery apps, and emotional support crystals on his nightstand. His only support system was Grandma, who told him to quit whining and mow the yard.
Nowadays, everyone’s broke, anxious, and “manifesting abundance” while ordering tacos on DoorDash for the fourth time this week.
It’s not the economy — it’s the lifestyle.
Wake up, turn off your subscriptions, make your own coffee, and maybe—just maybe—you’ll smell the truth.