I added a couple links in an edit at the end. The Cantillon Effect seems like it cuts to the basics of it - the people first receiving the money generation inherent in creating inflation are most likely to see increases in purchasing power while those who are farthest from the money generation see decreases in purchasing power.

I also found Ray Dalio's economy explanation kind of interesting although if you pay close attention he seems to gloss over the idea of who first gets the new loans when interest rates are lowered to spur the credit cycle, which seems like the crux of the issue. He says "the central bank lowers interest rates, causing more people to borrow" but leaves out the fact that YOU and I can't borrow at these lowered rates, we have to borrow from the people who borrow from the central bank at higher rates.

Rich people can borrow at better rates and buy more more stocks and get more money from the underlying company's earnings. In fact this is explicit if you look into margin investing on various forums. You can borrow on margin at 1.5% apparently on IBKR, but only for a certain fraction of your portfolio. If I have $100k I might only be able to borrow $50k, while a billionaire may be able to leverage an additional $500M.

I added a couple links in an edit at the end. The Cantillon Effect seems like it cuts to the basics of it - the people first receiving the money generation inherent in creating inflation are most likely to see increases in purchasing power while those who are farthest from the money generation see decreases in purchasing power.

I also found Ray Dalio's economy explanation kind of interesting although if you pay close attention he seems to gloss over the idea of who first gets the new loans when interest rates are lowered to spur the credit cycle, which seems like the crux of the issue. He says "the central bank lowers interest rates, causing more people to borrow" but leaves out the fact that YOU and I can't borrow at these lowered rates, we have to borrow from the people who borrow from the central bank at higher rates.