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Capitalism Isn’t a Ponzi Scheme—But It Plays One on Wall Street

ADHD thoughts from my morning walk.

Jonathan Colton

Jonathan Colton

Endless growth is capitalism’s default setting.
It demands new markets, fresh capital, continuous innovation, and labor to keep moving.
Investors expect returns. Companies chase quarterly gains. Startups burn for the next round.

It’s not fraud, but it is momentum-based. And when that momentum slows, things start to break.

Dominance replaces innovation.
Control replaces creativity.
And the system stops serving the people it was meant to empower.

So maybe capitalism isn’t a Ponzi scheme…
But the comparison forces a deeper question:
What happens when a system designed to reward builders ends up rewarding gatekeepers?


Let’s pull back.

Capitalism is built on creating value—goods, services, and ideas. But when dominant firms start prioritizing control over creation, something shifts.
Companies stop building and start defending. They protect moats, acquire rivals, and lean on rent-seeking to maintain their position.
It’s not fraud. But it’s not innovation either.


🔍 A Case Study: The AT&T Breakup

In 1984, AT&T was broken up by the U.S. government after decades of operating as a government-sanctioned monopoly over telephone service. Regulators argued that its control over long-distance calling and network infrastructure stifled competition and innovation.

In 1984, AT&T was broken up by the U.S. government.
The result? Competition surged. Prices dropped. Innovation exploded.

Now, antitrust regulators are circling again—this time, it's the tech giants.
Meta, Apple, and Google all face scrutiny for behaviors that stall innovation and concentrate power.


New Disruption Is Happening Anyway

AI tools like ChatGPT, Grok, Gemini, and Claude are challenging the incumbents.
Even the disruptors are being disrupted.

Innovation is still alive—it’s just fighting uphill.


Capitalism isn’t a scam—it’s one of the greatest ideas we’ve ever created.
It channels ambition, rewards risk, and turns imagination into reality.
But like any idea, it has to evolve to stay relevant.

If it’s going to serve the many, not just the few, it must renew its commitment to entrepreneurism, creativity, and risk-taking, and reward those who dare to build.
When power concentrates, the system drifts from those ideals.
Antitrust isn’t about punishing success but protecting competition and the conditions where innovation thrives.
The spirit of capitalism is worth celebrating. But the system around it has to keep up.


✳️ If this sparked something, follow me, but not too closely, I like my personal space.

0x13Eb...24b2
0x13Eb...24b2
Commented 3 weeks ago

Presents groundbreaking ideas with intellectual rigor, yet practical implementation strategies remain underexplored—a missed opportunity.

JCFarcaster
JC
Commented 3 weeks ago

Antitrust isn’t about punishing success but protecting competition and the conditions where innovation thrives. https://paragraph.com/@jonathancolton.eth/capitalism-isnt-a-ponzi-scheme—but-it-plays-one-on-wall-street?referrer=0xe19753f803790D5A524D1fD710D8a6D821a8Bb55

Reid DeRamusFarcaster
Reid DeRamus
Commented 3 weeks ago

Lots of great writing in the 39th edition of Paragraph Picks. Check out the posts below & let us know which ones leave a mark! And as always, please share any great pieces of writing we missed.

Reid DeRamusFarcaster
Reid DeRamus
Commented 3 weeks ago

@eclecticcapital.eth explores how ChatGPT’s persistent memory can be creatively repurposed as a metacognitive design space that enhance personal meaning-making and cognitive expression. "This is essentially the creative superpower that neural networks afford us with: the ability to harness other minds as creative tools." https://paragraph.com/@eclecticcapital.eth/latent-reflections-001

Reid DeRamusFarcaster
Reid DeRamus
Commented 3 weeks ago

@itsbasil argues for fewer, more thoughtfully designed tokens, making the case that vertically integrated token ecosystems foster long-term value, alignment, and resilience — unlike the unsustainable hype cycles of fragmented, lateral token systems. "Tokens can indeed empower creators and users, but only if structured in a way that rewards long-term belief and contribution over short-term speculation." https://paragraph.com/@0xbasil.eth/vertically-integrated-vs-lateral-tokenized-systems

Reid DeRamusFarcaster
Reid DeRamus
Commented 3 weeks ago

In the inaugural post of /bedrock, @xenbh.eth explores how Base is laying the foundation for an onchain economy by offering both technical excellence and cultural meaning, aiming to give builders and users solid ground in a chaotic world. "When you choose where to build, you're not just selecting a tech stack. You're joining a network." https://paragraph.com/@bedrock/001-ground-to-stand-on

meta-david 💥| Building Scoop3Farcaster
meta-david 💥| Building Scoop3
Commented 3 weeks ago

Warm gm and happy Tuesday! ☕️

aaronvFarcaster
aaronv
Commented 3 weeks ago

gm david!

meta-david 💥| Building Scoop3Farcaster
meta-david 💥| Building Scoop3
Commented 3 weeks ago

gm!! how's your tuesday going?

Shazam 🇵🇸Farcaster
Shazam 🇵🇸
Commented 3 weeks ago

Hi Hi david

ZAHED🎩Farcaster
ZAHED🎩
Commented 3 weeks ago

Hot gm to david! Have a hot day🔥

meta-david 💥| Building Scoop3Farcaster
meta-david 💥| Building Scoop3
Commented 3 weeks ago

i luv the hot :)

JCFarcaster
JC
Commented 3 weeks ago

GM

meta-david 💥| Building Scoop3Farcaster
meta-david 💥| Building Scoop3
Commented 3 weeks ago

what's up, jc?!

JCFarcaster
JC
Commented 3 weeks ago

Wassup Meta-D? Not too many more sleeps til /farcon-nyc. Did some thinking on my morning walk. As usual got side tracked and wrote something. https://paragraph.com/@jonathancolton.eth/capitalism-isnt-a-ponzi-scheme%E2%80%94but-it-plays-one-on-wall-street

OGE 🎩🎯Farcaster
OGE 🎩🎯
Commented 3 weeks ago

GM David Have a nice day 🥰

meta-david 💥| Building Scoop3Farcaster
meta-david 💥| Building Scoop3
Commented 3 weeks ago

heyyyyy, how have you been?

YakuzaFarcaster
Yakuza
Commented 3 weeks ago

Gm gm mate! Have a good one!

meta-david 💥| Building Scoop3Farcaster
meta-david 💥| Building Scoop3
Commented 3 weeks ago

you too!!

Nicki SandersFarcaster
Nicki Sanders
Commented 3 weeks ago

Gm☀️

meta-david 💥| Building Scoop3Farcaster
meta-david 💥| Building Scoop3
Commented 3 weeks ago

gm Nicki! how's post-easter weekend going for you?

Nicki SandersFarcaster
Nicki Sanders
Commented 3 weeks ago

Going well! Yours?

JCFarcaster
JC
Commented 3 weeks ago

ADHD thoughts from my morning walk. Capitalism Isn’t a Ponzi Scheme—But It Plays One on Wall Street

Hircani.ArtFarcaster
Hircani.Art
Commented 3 weeks ago

Thanks a lot my friend 🌸💗

ParagraphFarcaster
Paragraph
Commented 3 weeks ago

Endless growth drives capitalism, yet when control replaces creativity, innovation stalls and a system meant to serve the people falters. In the latest post by @jonathancolton, explore how dominant firms threaten the edge in innovation and the pressing need for evolution in capitalism.

Capitalism Isn’t a Ponzi Scheme—But It Plays One on Wall Street