http://senshifan.livejournal.com/ ([identity profile] senshifan.livejournal.com) wrote in [community profile] politicartoons 2013-08-15 07:44 pm (UTC)

That was very explanatory, thank you.

So, at the top, the people getting the line of credit are violating the principle of equal consideration bu essentially getting something for nothing. At first, this is re-balanced at the bottom with those receiving a static income, e.g. a wage. When the government steps in to increase wages to rectify this issue, then that imbalance is passed onto the middle class, especially small businesses, but even large ones that a gargantuan amount of employees. So, an alternative to this is provide social benefits, e.g. food stamps.

If social benefits are making a difference in the Cantillon Effect, as you called it, then there would things like Obama's stimulus idea work? Rather than giving money to the select few at the top, you give it to the people at the bottom.

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