Charles Ponzi was a small time hustler. The only image of him appears to be a mugshot with a number plate hanging around his neck. There are other descriptions of ponzi schemes out here. I won’t try to copy them. It is only the philosophical implications I am interested in. I think warnings against ponzi schemes should be written into the constitution. That would of course leave the government body culpable if they engaged any. There seems to be an interesting difference between the nature of government and the nature of business here. The government body can’t use methods designed for business. The government body will never make a profit so it can’t use methods designed to make a profit. It will crash. At the same time. Business can’t use methods designed for government. It will also crash and with even harsher consequences to the perpetrators.
People that create and run ponzi schemes work every hard to ultimately crash and burn as only they can. Someone smart enough to set up a ponzi scheme, as dumb as they are, is smart enough to figure out the consequences. It’s hard to think of our tax system as a small time hustle, it’s so big. However, that’s what it basically is. What do we do with hustlers? We auction their shoes to repay their victims.