The Cantillon Effect shows how newly created money favors those closest to its source, inflating asset prices and widening wealth gaps. Learning this helps explain monetary policy’s role in inequality.
Despite facing financial challenges, a sizeable portion of individuals underestimate their economic standing. Studies reveal that many who self-identify as “poor” actually fall within the top 10% of global income earners. This disparity highlights the subjective nature of wealth perception and the need for a more nuanced understanding of economic well-being.