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Are we heading towards a ponzi economy breeding hood-winkers, fraudsters, filthy wealth seekers and scam mongers?
Most politicians and law makers are encouraging and patronizing the ponzi economy since they become super rich through it in a few years times after being elected to the position of power. And, all this is resulting into ever bigger scams, as is evident from some the recent cases. Even the spiritualists and religious leaders have also got into the rat race of ponzi economy by flaunting style and grandeur to hoodwink and rob followers.

The recent worldwide financial frauds and money laundering cases had been related to pyramid schemes of ponzi economy or the schemes with multilevel investment;  marketing and purchasing schemes commonly described through the idiom 'Robbing Peter to pay Paul'.

According to Amy Goodman, "A typical Ponzi scheme involves taking money from investors, then paying them off with money taken from new investors, rather than paying them from actual earning."

In other words, the early investors in the ponzi scheme are paid with the money invested by later enticed investors. On the other hand, in a typical pyramid type ponzi scheme, each member is promised a reward for motivating and mobilizing more members for investment or through agents with commission cuts.

"The purpose of a Ponzi scheme is to trick people, to take the money and run," remarks Mitchell Zuckoff. In the same vein, reflecting on the current economy, Douglas Rushkoff says, "We do not live in an economy; we live in a Ponzi scheme."

As I have understood, while running a Ponzi scheme, the owner, initiator or floater of the scheme attracts a core of investors who could be counted on to hardly withdraw more than a small percentage of principal amount each year for keeping the greed for higher returns intact for unseen future and keep on reinvesting the returns.  Organising agents with incentives and big ads are used to brainwash people to invest.

Many well meaning economists think that lotteries, chance games, loan schemes, agency systems, mediations and negotiations, incentives for attracting more and more investors, mutual funds, stock market, insurance schemes,  appointment of goodwill ambassadors, coaching institute's scholarship scheme, corporate sector's scholarship schemes, corporate sector's incentive schemes, private sectors campaigns three initial free-ships, discount coupons, reality shows involving for money by the competitors, many award schemes are run on this principle of ponzi economy in which a few benefit but a rat race is created to attract money as investment treating awards and glamorous functions for publicity and ads.

With thoughtless emphasis in the name economic growth and rat race and hype for being economic power, Alex Jone feels that the world economy is a ponzi scheme. He says, "People are working harder than they ever have for less wages, but we have so many bobbles because manufacturing has come up so quickly over the past hundred years that people have the illusion of wealth."

It seems that the present's current ponzi economy had termed the human race into socially insensitive and towards ruthless materialistic living through enticement of all kinds the get-rich-quick ponzi schemes.

I do agree with Prof MM Goel, VC of Jagan  Nath University in Jaipur, when he remarked, "It is unfortunate that leading economists of the world promote greed as the basis of economic growth, turning it into a "Greedonomics". Economics should be based on need, not on greed."

Editorial NOTE: This article is categorized under Opinion Section. The views expressed in this article are solely those of the author and do not necessarily represent the views of merinews.com. In case you have a opposing view, please click here to share the same in the comments section.
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