I have to disagree. A ponzi scheme is a specific kind of financial con game. A large return is promised on money deposited.
not always. Many ponzi schemes just require you to buy their products and re-sell them. Actually the most classic ones are based on this.
The con artist collects the money and even pays out a bit to the first investors when they start to demand their money.
Almost all ponzy schemes pay out regularly. Even one of the biggest mining ponzies, hashocean offered people to get out anytime they wanted while they could cash out their profit.
As more and more people start demanding their earnings, the ponzi scheme needs more and more people investing to pay for this.
Market bubbles happen exactly like that.
When the tipping point is reached, the con artist skips out of town. The key to defining the ponzi is that no real economic activity is happening. Its just money in, and money out.
This is why I am mentioning the government or the hundreds of "financial institutions". There are trillions exchanged in what is called "futures" which are essentially thin air. empty promises.
Capitalism is not a ponzi scheme. Capitalism works when people save some of their earnings and use it in productive endeavors, thereby increasing the value of their capital.
Not really. Capitalism is all about investing and getting more and more returns. Savings is counter-intuitive in capitalism.
Savings is essential to capitalism.
Saving is counter -intuitive in socialism.
Opposite. Ask any major company or financial institution if they are saving or investing.
Now go down to Venezuela and watch how everyone is hoarding..saving something.
Every major company (or any company for that matter)or financial institution saves part of their profits for investment. If they don't , they are not in business for very long.
In Venezuela, the government is hyperinflating the currency, thereby destroying everyone's savings. You can see the result.
You either invest or save. This is what everybody does after paying for expenses.
Nobody has any savings in Venezuela. They are worth practically nothing. hence why they are saving commodities that are worth more. It is speculated than burning money is cheaper than buying firewood.
And you can see what happens when saving money is useless. It is chaos.
it's always chaos my friend. what is chaos for the fly is order for the spider. depends from which seat you are looking at things.
What , are you an ancient Greek philosopher? All is not chaos.