In any scam, any con, any hustle, the big winners are the people who supply the scammers - not the scammers themselves. The kids selling dope on the corner are making less than minimum wage, while the respectable crime-bosses who own the labs clean up. Desperate “retail investors” who buy shitcoins from Superbowl ads get skinned, while the MBA bros who issue the coins make millions (in real dollars, not crypto).
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If you’d like an essay-formatted version of this thread to read or share, here’s a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:
https://pluralistic.net/2024/01/15/passive-income-brainworms/#four-hour-work-week
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It’s ever been thus. The California gold rush was a con, and nearly everyone who went west went broke. Famously, the only reliable way to cash out on the gold rush was to sell “picks and shovels” to the credulous, doomed and desperate. That’s how Leland Stanford made his fortune, which he funneled into eugenics programs (and founding a university):
https://www.hachettebookgroup.com/titles/malcolm-harris/palo-alto/9780316592031/
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That means that the people who try to con you are almost always getting conned themselves. Think of #MultiLevelMarketing (#MLM) scams. My forthcoming novel The Bezzle opens with a baroque and improbable fast-food #Ponzi in the town of Avalon on the island of Catalina, founded by the chicle monopolist William Wrigley Jr:
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Wrigley found fast food declasse and banned it from the island, a rule that persists to this day. In The Bezzle, the forensic detective Martin Hench uncovers The Fry Guys, an MLM that flash-freezes contraband burgers and fries smuggled on-island from the mainland and sells them to islanders though an “affiliate marketing” scheme that is really about recruiting other affiliate markets to sell under you.
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As with every MLM, the value of the burgers and fries sold is dwarfed by the gigantic edifice of finance fraud built around it, with “points” being bought and sold for real cash, which is snaffled up and sucked out of the island by a greedy mainlander who is behind the scheme.
A “bezzle” is #JohnKennethGalbraith’s term for “the magic interval when a confidence trickster knows he has the money he has appropriated but the victim does not yet understand that he has lost it.”
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In every scam, there’s a period where everyone feels richer - but only the scammers are actually cleaning up. The wealth of the marks is illusory, but the longer the scammer can preserve the illusion, the more real money the marks will pump into the system.
MLMs are particularly ugly, because they target people who are shut out of economic opportunity - women, people of color, working people.
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They necessarily rely on social ties for survival, looking after each others’ kids, loaning each other money they can’t afford, sharing what little they have when others have nothing.
It’s this social cohesion that MLMs weaponize. Crypto “entrepreneurs” are told to suck in friends and family by telling them that they’re “building Black wealth.” Working women are exhorted to suck in their bffs by appealing to their sisterhood and the chance for “women to lift each other up.”
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The “sales people” trying to get you to buy crypto or leggings or supplements are engaged in predatory conduct that will make you financially and socially worse off, wrecking their communities’ finances and shattering the mutual aid survival networks they rely on. But they’re not getting rich on this - they’re also being scammed:
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4686468
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@pluralistic
“Where are the Customer’s yachts”
in his novel Roughing It, Mark Twain spends a great deal of time talking about a hyper speculative bubble in mining stocks in Nevada/California in the 1860s
and how so many people lost their shirts on insanely over priced mining stock or claims
@pluralistic@mamot.fr Last week at work I got an email from a sales manager asking if we’d like to be hooked up with “green” printer toner. As in, an “eco” product whose entire existence depends on us cutting down trees. I couldn’t believe it.
Their parent company’s website had a little box labelled, “You’re in good company” - Google, Tesla, McDonalds, and A P P L E.
A scam 𝘢𝘯𝘥 a bullshit job: having to pretend you’re doing your bit to avert catastrophe, yet knowing your product would be a net harm.
@pluralistic@mamot.fr
#CryptoIsBullshit
#GetRobbed@pluralistic@mamot.fr I found a scammer on TikTok, she apparently has a real Ph.D (physics) and an actual non-profit and if you can just get her 10 million dollars, her 100% effective and very real cure for cancer will be available and free for all.
She’s already gained at least 2.5m dollars. I submitted a complaint to her state’s attorney general but I have little hope it’ll go anywhere.@Beeks@mstdn.party @pluralistic@mamot.fr
When l got my cancer diagnosis, l did not appreciate the extent to which l would have to protect myself from scammers and quacks.
@PaulInRainCity@heads.social @Beeks@mstdn.party @pluralistic@mamot.fr
Unfortunately, there’s a whole cottage industry of scammers preying on people in desperate situations.
@PaulInRainCity @Beeks @pluralistic I’m curious about your experience. Do you mean the difficulty of defending yourself mentally/psychologically, or something else?
I was diagnosed with cancer 4 years ago today, and haven’t found scammers to be part of my experience
@PaulInRainCity@heads.social @Beeks@mstdn.party @pluralistic@mamot.fr the worst I ever had to deal with was a well-meaning but misguided open source colleague who, er, mistook me for a Steve on another continent and suggested I travel to Slovenia for cutting edge medicine that could cure any cancer with CAR-T therapy (which is basically inapplicable to my solid tumor cancer)
