Tyson Jones, Utah Valley University
Academic Affairs
In 2008 the people of the United States and the world were awakened from a dream that huge financial gains can be made at the expense of huge public losses while everything will stay just and fair. Unfortunately, the 2008 economic crash wasn’t the result of just one idea in one sector, but rather a culture within economies; a culture that has not just investment bankers but everyday American and foreign citizens pursuing the same path. This path, that many American and foreign citizens have been enticed by, is a business structure that leaves an individual and their chances of success equal to the chances of failure of those that follow suit, namely Ponzi Schemes. The many people who follow Ponzi Schemes are looking for financial security along with promises of high earnings and early retirement, but are often met with greater debt than they had before simply due to the structure of these Ponzi schemes. For the most part Ponzi schemes have been made illegal in the United States; however, due to certain laws that have been established, Ponzi schemes have been operating under the guise of established businesses known as Multi-level Markets (MLMs). The laws in question are the DSHEA, which has aided MLMs on a national level, and Utah S.B. 0182, which created a loophole for MLMs to operate in large numbers on a State level. Thus a culture of legal positivist views allows the illegal and immoral business practices of MLMs to encourage a culture of harming many to reward a few. This conclusion about MLMs comes from contrasting the structure of MLMs with the moral theory of Immanuel Kant’s Categorical Imperative which requires that all moral actions be held as a universal maxim, and that people are not treated as merely means to an end. The purpose of this research is to assess whether the previous conclusion is in fact true of MLMs in regards to moral business practices through the Categorical Imperative. If after examination the conclusion is found to be true, the DSHEA and Utah S.B. 0182 both need to be revoked in order to begin a change in culture; else large amounts of U.S. dollars, as well as other currencies, will continue to fund illegal Ponzi schemes acting as legitimate businesses and an opportunity to take steps to change U.S. culture on the nature of wealth. In addition, a new culture that allowed for the 2008 financial crisis of large rewards for the few at huge public expenses will continue to grow.