True, because it’s also a giant Ponzi scheme. We pick up new debt today to pay off debt from yesterday, and we hope expanding GDP and inflation will always offset the difference.
Yes, but most people using the term don’t know their defitition, so knowing the correct definition is of limited usefulness.
Ponzi is for Investments that offer high returns, by marking the principal as gains.
Pyramid schemes sell stuff, through a pyramid of salesmen. Each one earns a percentage of the revenue of his underlings and is encouraged to recruit more underlings.
If anything this understates the problem.
True, because it’s also a giant Ponzi scheme. We pick up new debt today to pay off debt from yesterday, and we hope expanding GDP and inflation will always offset the difference.
Is there a difference between a pyramid and a ponzi scheme?
Yes, but most people using the term don’t know their defitition, so knowing the correct definition is of limited usefulness.
Ponzi is for Investments that offer high returns, by marking the principal as gains. Pyramid schemes sell stuff, through a pyramid of salesmen. Each one earns a percentage of the revenue of his underlings and is encouraged to recruit more underlings.