LOL - yes 100% correct
And the means by which you get unlimited growth of government (and the self-serving political class at the top which enriches itself) is printed, unbacked money, from a central authority (ie. a political central bank) allowing for exponential growth of debt and the monetary base.
If evidence is needed, just look at how US deficit, debt and spending has spiked, particularly under the deep-state controlled Biden. And when the bubble bursts, and key political bases in places like NY and CA crash - the solution is QE and TARP to bail-out key financial and political players.
Its the 21st century version of Cantillon Effects
All this is impossible under a precious-metals backed system - or any currency that politicians do not control.
And that’s where the world is now heading!
Cantillon Effects refer to the uneven impact of new money entering an economy, named after 18th-century economist Richard Cantillon. When money supply increases—say, through central bank printing or credit expansion—it doesn’t spread uniformly like rain on a field. Instead, it hits certain groups or sectors first, altering prices and wealth distribution before others feel the ripple.Imagine a government injects $1 trillion into the system via banks. Those banks lend to big corporations or wealthy clients first. These early recipients—call them the “first movers”—spend or invest before prices adjust. They might buy real estate, stocks, or raw materials, driving up those costs. By the time that money trickles down to wages or small businesses, prices for goods like housing or food have already spiked. The latecomers—often workers or fixed-income folks—face higher costs without a matching boost in purchasing power. Wealth concentrates with those closest to the money spigot.
Cantillon laid this out in his 1755 Essai sur la Nature du Commerce en Général. He saw money as non-neutral: its entry point shapes who wins and loses.
Take 2020’s COVID stimulus—trillions funneled through financial markets and corporate bailouts. Asset prices (stocks, homes) soared, benefiting investors and homeowners early. Renters and savers, stuck with inflating grocery bills and flat interest rates, got squeezed. Data backs this: U.S. household wealth jumped $36 trillion from 2020-2022 (Federal Reserve), but the top 10% captured most gains, while inflation hit 9% in mid-2022, eroding real wages.
The effect’s strength depends on how money’s injected. Quantitative easing favors asset holders; direct cash payments might tilt toward consumers. Critics—like some Keynesians—say it’s overstated, arguing markets eventually balance out. But skeptics of central banking (e.g., Austrian economists) see it as proof of systemic distortion, enriching connected elites first. History’s littered with examples: Spanish gold inflows in the 1500s inflated prices in port cities before rural areas, shifting power to merchants.
In short, Cantillon Effects highlight money’s path matters as much as its amount. It’s why “who gets it first” can outweigh “how much” in economic outcomes. Solid concept, though hard to measure precisely—data’s always chasing shadows of intent.