3 ms·

How is it redistributing wealth? From who to who?

• Geee 5y ago
  Simply put, from the poor to the rich. It's a major cause of wealth centralization.
• kevin_thibedeau 5y ago
  To those controlling interest rates from those who don't have any access to low risk investments.
  • JumpCrisscross 5y ago
    > from those who don't have any access to low risk investments Treasuries, the lowest-risk dollar investment, are the first to lose value with inflation. And everyone has access to Series I bonds.
• cloutchaser 5y ago
  From whoever is furthest to money creation to whoever is closest. Ever wonder why record stock buybacks and record ceo pay are happening right when QE is happening? Why stock markets and PE ratios are at record highs? Why there are record amounts being invested by VCs? Why commodity prices have been rising? It’s not because of evil capitalism. It’s because those people are closest to where money creation happens. The 1% aren’t getting richer because of the exploitative nature of capitalism, but because they have access to new money.
  • _0ffh 5y ago
    >From whoever is furthest to money creation to whoever is closest. Precisely! You might also want to mention that there's a name for that, the Cantillon Effect. [Ed. Fixed spelling according to sparkie's correction.]
    • sparkie 5y ago
      Cantillon has 1 i in it.
      • _0ffh 5y ago
        Right, thanks! I actually did check first, but adamsmith.org encouraged me in my mistake (first hit on duckduckgo, same typo "Cantillion").
• brazzy 5y ago
  From creditors to debtors.