Cantillon Effect: Consequences of Inflation
I have touched upon what inflation is in the past and where it derives from, however, for the purpose of this video I have decided to explain further on request relative to the consequences of inflation. I've mentioned in the past how the devaluation of the currency doesn't affect the rich and that as a result of the distortion of the interest rates wrong signals were sent out to investors and this certainly proved the case with inflation.
In this video I explain briefly on profits and losses, the importance price signals play, why inflation benefits the rich, as well as the malinvestment problem created through the Catillon effect.
If you have trouble understanding, market-driven prices would only drive up the price of whatever the consumer is in demand of in a free market, whereas inflation drives up the price of more or less everything which includes such goods the market wasn't initially in demand of, therefore, it distorts the signals and the higher price makes it appear that such goods are in demand, when in real fact it is the illusion inflation created.
It is a direct consequence of this for why malinvestment takes place, not only from those getting a hold of the newly created money first spending to compete to take what is currently out to reallocate resources, capital and labour, but the distortion inflation caused in of itself, which explains why the economic calculation problem doesn't just occur via government price controls and is natural to this mixed economy.
*Follow Me on Social Media:*
• Facebook: https://www.facebook.com/LibertarianViewsScottyM
• Twitter: https://twitter.com/ScottCJMcKelvie
• Parler: https://parler.com/#/user/LibertarianViewsScottyM
• Gab: https://gab.com/LibertarianScot
• Minds: https://www.minds.com/LibertarianScot/
• MeWe: https://mewe.com/i/scottmckelvie
• WordPress Blog: https://libertarianviewswithscottym.wordpress.com/
• LBRY/Odysee: https://odysee.com/@LibertarianViewsScottyM:6
• Rumble: https://rumble.com/c/c-390494
• BitChute: https://www.bitchute.com/channel/egfCIS1DbaBM/
*You can also support me here on Patreon:*
https://www.patreon.com/LibertarianViewsScottyM
-
25:30
Libertarian Scot
1 year agoChild Labour: Industrial Revolution to Present—Refuting Viki1999
97 -
3:57
Michael Heaver
19 hours agoEU Makes BIZARRE Threat Against UK
15.9K6 -
11:46
RealitySurvival
8 hours agoRussia Issues Dire Warning! Tac Nukes Are On The Table!
14.9K14 -
4:20:36
SNEAKO
6 hours agoSNEAKO X MYRON DESKTOP
89.7K65 -
2:25:29
Price of Reason
14 hours agoDisney TUMBLES, Gamers Win BIG, Superman DISAPPOINTS, NEW Game of Thrones Spinoff w/ Dreadroberts
18.8K -
LIVE
Jerry After Dark
10 hours agoJerry After Dark: Boston Jerathon
979 watching -
2:11:40
Kim Iversen
11 hours agoRUMBLE BAN ALERT: Russia Cracks down on Free Speech | Israel PISSES OFF Egypt and US After Rafah Border Seizure
62.4K140 -
8:03:54
Akademiks
10 hours agoBreaking: Drake House Shot Up by Goons. Kendrick Lamar Got another Coming?? Drake finna SPIN BACK?
92.8K77 -
1:26:23
The Anthony Rogers Show
19 hours agoEpisode 306 - Theresa Cheung
33.6K4 -
1:25:45
Glenn Greenwald
12 hours agoTikTok Constitutionally Challenges Forced Sale, Lawmakers Exploit Holocaust to Feed Moral Panic over Antisemitism; PLUS: The Ozempic Craze with author Johann Hari | SYSTEM UPDATE #268
83.8K152