...It is mind-boggling that so much money can be spent on something clearly so worthless; I'm not sure what that says about the people making the decisions...
It's not the economic system so much as it is stupidity or some combination of corruption and stupidity.
Corruption and greed are human nature for a minority of people. The culture, regardless of the system, can encourage or discourage those who would be cheaters. And I'm not talking about ethnic culture. I'm talking about the cultural influences for example, if everyone else is cheating, more people decide there's no reason they shouldn't also cheat.
Here are some more examples:
The approach we take to the free market which conflates free speech with the right to lie
Because we are reluctant ro regulate claims one's product is "better" or gets your whites whiter, your teeth brighter and so on, that has been translated into a reluctance to stop outright fraudulent claims like the fake bomb detector or Kevin Trudeau's, "Cures
They Don't Want You to Know About". "Kills germs", "invented by a teacher" and "apply it to your forehead" or "your scar" are product promotions that are outright deception and clearly in a different class than whiter whites claims. We have to create an expectation that deception by misleading is qualitatively different than deception by inflated claims like whiter whites.
We don't value teaching critical thinking in our primary education system
This is a cultural value, but it is not bounded by country or ethnicity. The idea of revealing marketing schemes as mandatory curriculum in primary education will require a paradigm shift in what we expect primary education to include. And that is in addition to the obstacles to teaching critical thinking when it comes to logical assessment of evidence. That change will require getting over a huge barrier of resistance to debunking superstitious thinking processes. And the barrier is not just formal religion based opposition like Christianity might produce, but also parents' unsupportable beliefs of all kinds. Parents resist having their children learn things the parents don't believe.
The culture of corruption in market and political arenas is another important contributor, but if I add them to this discussion it will no doubt start a political discussion and we have enough of those threads already.
