Ponzi Schemes and the Liberal Mind

Ponzi Schemes and the Liberal Mind

© by Dennis York 2011

The liberal democrat Bernie Madoff is currently serving 150 years in prison for creating a Ponzi scheme that bilked other liberal Democrats of portions of their life savings.

A Ponzi scheme is a financial scam that depends on ever increasing participation to pay early participants large gains. Ponzi schemes are mathematically untenable and always end badly because there is no such thing as "ever increasing participation." That is why they are illegal in the private sector.

But Ponzi schemes in the public sector are legal. Social Security, Medicare, Medicaid, Obamacare, and most government pension plans are examples of Ponzi schemes. Government Ponzi schemes have a slight advantage over private ones in that the government can coerce sensible people to participate against their will. This extends the life of the scheme but also amplifies the magnitude of the disaster when the inevitable collapse occurs.

Only criminals, fools, and liberal politicians promote Ponzi schemes. Which are you? Feel free to pick more than one of the options.