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What is the difference between 419 scams and trickle down economics?

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ck4829 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Feb-12-09 07:50 PM
Original message
What is the difference between 419 scams and trickle down economics?
Edited on Thu Feb-12-09 08:49 PM by ck4829
419 scam:
This scam usually begins with a letter or e-mail purportedly sent to a selected recipient but actually sent to many making an offer that will ultimately result in a large payoff for the intended victim. The email's subject line often says something like "From the desk of Mr. (Name)", "Your assistance is needed", and so on. The details vary, but the usual story is that a person, often a government or bank employee, knows of a large amount of unclaimed money or gold which he cannot access directly, usually because he has no right to it. Such people, who may be real but impersonated people or fictitious characters played by the scammer, could include the wife or son of a deposed African or Indonesian leader or dictator who has amassed a stolen fortune, or a bank employee who knows of a terminally ill wealthy person with no relatives or a wealthy foreigner who had deposited money in the bank just before dying in a plane crash (leaving no will or known next of kin), a U.S. soldier who has stumbled upon a hidden cache of gold in Iraq, a business being audited by the government, a disgruntled worker or corrupt government official who has embezzled funds, a refugee, and similar characters. The money could be in the form of gold bullion, gold dust, money in a bank account, so-called "blood diamonds", a series of cheques or bank drafts, and so forth. The sums involved are usually in the millions of dollars, and the investor is promised a large share, typically ten to forty percent, if they will assist the scam character in retrieving the money. Whilst the vast majority of recipients do not respond to these emails, a very small percentage do, enough to make the fraud worthwhile as many millions of messages can be sent. Invariably sums of money which are substantial, but very much smaller than the potential profits, are said to be required in advance for bribes, fees, etc.—this is the money being stolen from the victim, who thinks he is investing to make a huge profit.

A scammer will introduce a delay or monetary hurdle that prevents the deal from occurring as planned, such as "in order to transmit the money, we need to bribe a bank official. Could you help us with a loan?" or "In order for you to be allowed to be a party to the transaction, you need to have holdings at a Nigerian bank of $100,000 or more" or similar. More delays and more additional costs are added, always keeping the promise of an imminent large transfer alive, convincing the victim that the money they are currently paying will be covered several times over by the payoff. Sometimes psychological pressure is added by claiming that the Nigerian side, in order to pay certain fees, had to sell all belongings and borrow money on their house, or by pointing out the different salary scale and living conditions in Africa compared to the West. Much of the time, however, the needed psychological pressure is self-applied; once the victims have put money in toward the payoff, they feel they have a vested interest in seeing the "deal" through. Some victims believe that they can cheat the con artist. This idea is often encouraged by the fraudsters who write in a clumsy and uneducated style which presents them as naive and easily cheated by a sophisticated westerner.

The essential fact in all advance-fee fraud operations is that the promised money transfer never happens because the money or gold does not exist. The perpetrators rely on the fact that, by the time the victim realizes this (often only after being confronted by a third party who has noticed the transactions or conversation and recognized the scam), the victim may have sent thousands of dollars of their own money, and sometimes thousands or millions more that has been borrowed or stolen, to the scammer via an untraceable and/or irreversible means such as wire transfer.

http://en.wikipedia.org/wiki/Advance_fee_fraud

Trickle down economics:
Social programs are gutted and massive amounts of welfare and tax cuts are handed out to corporations and the wealthy, while the Republican Party tells us that if the top 1% amass enough wealth then everyone else will be rewarded with more jobs.

Funny thing happened though, the rich are getting richer, yet there aren't all that many jobs.

Both:
Someone comes to someone else offering prosperity
The "someone else" makes a financial sacrifice in hopes that "someone's" offer was true
"Someone else" gets scammed, is out of money, while that first someone runs, laughing, to the bank

Do you see a difference? I don't.

It's time to face up to the truth, this whole nation got swindled.
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Mike 03 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Feb-12-09 08:01 PM
Response to Original message
1. Great post. I need to think about it, and think it through, but in the meantime, REC. NT
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xchrom Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Feb-12-09 08:43 PM
Response to Original message
2. i don't buy all of this -- but it's provocative and has real elements of truth -- recommend
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Bobbieo Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Feb-12-09 08:55 PM
Response to Reply #2
3. Trickle Down Economics do not use Western Union or FedEx!
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lostinacause Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Feb-12-09 09:16 PM
Response to Reply #3
4. -ignore-
Edited on Thu Feb-12-09 09:18 PM by lostinacause
see post #5 below
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lostinacause Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Feb-12-09 09:18 PM
Response to Original message
5. The success or failure of trickle down economics is not obvious. As a theory though it is garbage.
The reason why is that there is nothing intrinsic about the theory that actually gives any indication of whether the promises will be fulfilled. In fact just by strictly following the money the theory says that the poor will be worse off because of it.

The problem with the theory is that it doesn't look at incentives. As the tax rate changes what do people do? Do they work harder? Do they invest more? Does such a policy increase the incentive to innovate? The extent to which trickle down economics is beneficial is the extent to which the answer to these questions is yes and the significance of the changes. It's not a question of how much more money the wealthy have. It's a question of how they adjust to the changes.
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Mike 03 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Feb-12-09 09:20 PM
Response to Reply #5
6. Great post, lostinacause. NT
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DLnyc Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Feb-12-09 10:24 PM
Response to Original message
7. The only difference is that the 419 scammers disappear without a trace,
while the trickle-down scammers show up every night on Fox News shilling for more billions in tax cuts for wealthy people and deregulation for their bribers, uh, I mean donors.

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