Why Prices Go Up Before You Get a Raise ?

Psst. What does a free pizza have to do with rising prices? Meet Bandit the Raccoon at the dumpster for a lesson in the Cantillon Effect. When new money enters the economy, it reaches some people before others. Bandit uses a pizza delivery in his alley to explain why getting the money first can be an advantage, how it can push up the price of houses and stocks, and why paychecks can take longer to catch up. So where are you in Bandit’s alley? Do you get a hot slice or wind up with cold crust? Tell us in the comments, and subscribe for more economics from the dumpster. #CantillonEffect #EconomicsExplained