Who’s Power?

It looks like the Feds have uncovered another pyramid scheme, and a whole new crowd of people who were at the bottom of the pyramid are out of luck and out of their money and the fruit of their lives that they invested in it. You have to wonder why they were so deluded as to believe in something “too good to be true.” Something that feeds the power — if money is power — of the man at the top of the pyramid.

Of course, that is why it’s referred to as a pyramid (aka Ponzi) scheme. Lots of little folk at the bottom willingly give their money into the coffers of fewer and fewer, the higher one climbs on the pyramid, until the fellow at the top gets access to all the money to pursue his own aims. It works very well, as long as the resources never run dry. The resources are of course the folks at the bottom of the pyramid who continue to donate their money.

Catherine Rampell of the New York Times says that pyramid schemes are mathematically “doomed,” and claims that “anyone sophisticated enough to concoct a Ponzi scheme . . . must be sophisticated enough to do the math here.”

But from where I sit the entire United States economy, and our economic theory, are based on the fallacy that our economy can grow forever in the absence of a base of growing resources.

Isn’t that the same thing?