You know hate can be pretty darn lucrative…..hate sells and when it sells it becomes really profitable….I remember the pyramid schemes from years past…you know the ones where you join and work your way up to manager, supervisor or regional director….with each step you would get money from each person you had in your plan……
The reason I bring this up is that the old stand-by for racists and bigots alike….the KKK, the Klan, you know those guys in white sheets and face covers……someone did a bit of historical perspective on the workings of the Klan back in the 1920’s……
Even during its 1920s heyday, the Ku Klux Klan wasn’t a very effective hate group, according to an analysis by Harvard economist Roland G. Fryer and Steven D. Levitt, the latter of Freakonomics fame. However, the Klan was a “wildly successful” pyramid scheme, according to a Priceonomics blog post that rehashes the pair’s 2011 study of the group. In the piece, Rosie Cima writes that KKK leaders “exploited pre-existing, popular racism to make money.” For example, during a time when most in the US made less than $700 annually, the KKK leader in Indiana made some $200,000. He and other leaders managed it through clever marketing and the invention of all kinds of ways to make money off their own members—a classic trait of a pyramid scheme. For instance, the Klan charged members a $10 initiation fee, and Fryer and Levitt provide the breakdown:
- $4 to the salesman (called a “Kleagle”) who recruited a member
- $2.50 to the PR firm the Klan had hired to boost membership (it boomed)
- $2 to the Klan’s self-declared “grand wizard,” William Simmons
- $1.50 to a regional supervisor (the “Grand Goblin”).
The result, Cima notes, “looked much like a modern multi-level marketing company—with extremely stupid titles.” And it didn’t stop with initiation fees: the Klan leaned on members to buy robes (and robe cleaning), along with Klan-branded life insurance, accessories, bibles, and even candy. The Klan petered out as a genuine national force in the 1940s (the feds got them for back taxes). But small KKK groups are still out there, and, according to Vice, some are using candy as a recruiting tool rather than as a moneymaker. Residents of Cullman City, Arkansas, recently received KKK fliers packaged with Tootsie Rolls and lollipops. Authorities there are investigating the not-so-original scheme.
Like I said…..hate can be very profitable……god bless capitalism…..