1) Caller id was conceptually flawed from the beginning so was implemented as an honor system instead of something required to communicate (like an IP address)
2) Caller id is unregulated, so there is no penalty for spoofing
My previous comment on it:
https://news.ycombinator.com/item?id=19303931
From the linked article:
Unlike phone numbers and domain name service (DNS), wherein there are internationally recognized databases that are authoritative sources, there is no central authority or regulation for caller ID. No FCC guidelines regulate carrier accuracy, and although federal regulations exist regarding telemarketers and spoofing, carriers can maintain their caller ID databases as they see fit.
https://www.onsip.com/blog/how-caller-id-works-why-it-might-...