I think they should be legal as long as no one is being forced into the scheme. People know very well the risks associated with such schemes.
But I guess at the same time these schemes are addictive and irresistible to 99% of the population, and they are destructive.
So do libertarians advocate the outlawing of Ponzi/pyramid schemes?
The biggest ponzi scheme I can think of is National Insurance/Social Security. And we are forced into that one!
These pyramid schemes are, most often, blatently pyramid schemes from the outset. People are free to accept or decline a pyramid/ponzi scheme as they so choose. There is no need to outlaw them as long as they’re voluntary.
Unlike, yes, Social Security.
pyramid schemes are another case of public hysteria overwhelming common sense, and politicians stoking this hysteria for personal gain.
you don’t need a law against pyramid schemes because a law against fraud already exists. pyramid schemes without fraud should be permissible. but who wants the responsibility of examining the contracts one enters? that’s what the state is for, to be my mommy. my mommy can get me out of anything I decide I don’t really like (like credit card terms) because I didn’t really know what I was doing. Also I deserve an ice cream because tommy’s parents got him an ice cream!