Charles Ponzi - Financial Genius for our Times
Charles Ponzi - after whom "Ponzi scheme" was named - convinced people to invest in postage stamps. This plan was widely criticized, because it promised profits, when in fact all it did was pay off early investors with a fraction of the money put into the scheme by newer investors. These days, anyone who isn't self-deceived recognizes that this is the entire basis for Social Security, and increasingly all government spending. The entire idea behind the national debt is that someone will pay it off later - someone who must be a lot smarter than we are today, or perhaps a lot harder working, or perhaps just really stupid to pay off such a huge debt without having ever gotten any benefits and having no realistic chance of ever getting such benefits themself. So ultimately, as no one seems willing to admit, the debt will be retired in one of two ways - repudiation, or inflation. Probably a combination - inflation to reduce the value, then some complex "currency re-valuat...