We should give a $10,000 investment account to every newborn baby.
It's a crazy idea, but the logic and math is pretty compelling...
Here's how I see it working:
Earlier this week, I wrote a thread on the Cantillon Effect—which says that there are distributional consequences based on where new money enters the system.
It suggests that top-down monetary policy propagates inequality.
But I got a lot of questions about how to fix this...
The Cantillon Effect is the most important economic concept you’ve never heard of.
Here's a breakdown of what it is (and why you should care):
1/ Richard Cantillon was an Irish-French economist and philosopher born in the 1680s.
He achieved success as a banker—which he attributed to the formidable connections made through his family and employer.
At a young age, he had learned of the impact of proximity to power...
2/ Around 1730, Cantillon wrote a paper—Essay on the Nature of Commerce in General—which is considered a foundational work in the study of the political economy.
It was widely circulated in manuscript form, though it was not published until 1755, well after his death.