It's hardly a trickle either.

I caught myself mid laugh before realizing the reality of that statement.

I don't think people actually agree on the definition of capitalism itself, I just looked it up and was a little surprised how definitive it is:

an economic and political system in which a country's trade and industry are controlled by private owners for profit.

If you asked whether capitalism is a political system, at least in my random polling, 2 out of 9 respondents said No.

The difference between a pyramid scheme and a good business is where your money comes from, in a pyramid scheme it comes from the people at the bottom of the pyramid, in a business it comes from selling goods and/or services, that's not saying I agree with big business, but one is profiting off of legitimate customers, the other is profiting off it's own "employees". I nearly got caught into one a few years ago too, until I realized what it was, at that point they had only taken a couple $100 for the interview and sign up stage, i had to block my card for them to never get access again, because even though i didnt complete sign up, thwy kept charging me monthly

Transactions are often not equitable, and most wealth bubbles up to the people on the top tiers.

Except that you're describing commerce, not capitalism. Capitalism is the idea that the commerce has value, and that one can own the value of the commercial activity. Further, the value of the business is tied to it's growth.

Further, products and services are never exchanged in an equitable transaction between two parties, because capitalism necessitates a third party, the capitalist. The capitalist must acquire products and services from employees for less than their true value, and then sell them to consumers for more than their true value.

And because capitalism demands growth, one or both of those two margins must continue to expand. This means workers must be pressured to work for less and less, which is why the capitalist opposes social services, universal healthcare, and affordable housing. This also means the capitalism opposes consumer protections, environmental protections, and taxes that provide a functioning society that might interfere with their growth.

Now what happens when every producer and consumer is fighting for the same margins, the same advantages, and the same growth? Then the capitalist seeks new avenues for new capital and new capitalists. Building business on ensuring the growth of business for other capitalists. Selling the idea that you, too, can join us at the top of the pyramid, all the while kicking down ladders they climbed to get there.

So no, the system itself isn't a pyramid scheme. It's just an idea that encourages pyramid schemes because it relies on impossible growth, like a cancer eating away at society.

Please explain, how exactly is fractional-reserve banking a pyramid scheme?

True, because it's also a giant Ponzi scheme. We pick up new debt today to pay off debt from yesterday, and we hope expanding GDP and inflation will always offset the difference.

omg me

Yes!

I've seen several thought experiments about capitalism, and letting it run to its extreme conclusion.

• Attempt one, with the theoretical best starting conditions, devolved into feudalism
• Attempt two, which assumed people knew how attempt one ended up and where they wanted to do everything they could to prevent that from happening again, concluded towards theocracy, since capitalism ignores religion, which can become a coercive power structure, separate from capitalism or government.
• Attempt three, where everyone knew how the previous two experiments went, did away with money, and replaced it with an economy based on service contracts, evolved into communism.