Re:The U.S. government’s failed 1890s attempt to forge unity...
by lamontcg on Friday June 11, 2021 @08:12PM
(#27480054)
The problem with the Cantillion effect is that the way its usually explained there is an eventual trickle down.
There probably was a trickle down Cantillion effect in his time since in the 1730s rich people would one way or another buy other people with their money.
These days it is trickling down to Google SWEs who the rich people can use to build machines to put the grocery checkers out of work. I don't think its trickling down to the grocery checkers.
So the Gini coefficient keeps increasing, rather than leading to broad inflation.
Eventually the bottom half of the economy should be effectively priced out of it, at which point we should see a deflationary collapse in the top half.
There probably was a trickle down Cantillion effect in his time since in the 1730s rich people would one way or another buy other people with their money.
These days it is trickling down to Google SWEs who the rich people can use to build machines to put the grocery checkers out of work. I don't think its trickling down to the grocery checkers.
So the Gini coefficient keeps increasing, rather than leading to broad inflation.
Eventually the bottom half of the economy should be effectively priced out of it, at which point we should see a deflationary collapse in the top half.