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Lotteries

Harry Guerrilla

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Lotteries : The Frontal Cortex

The devious slogan for the New York State lottery is "All you need is a dollar and a dream." Such state lotteries are a regressive form of taxation, since the vast majority of lottery consumers are low-income. The statistics are bleak: Twenty percent of Americans are frequent players, spending about $60 billion a year. The spending is also starkly regressive, with lower income households being much more likely to play. A household with income under $13,000 spends, on average, $645 a year on lottery tickets, or about 9 percent of all income.
In two experiments conducted with low-income participants, we examine how implicit comparisons with other income classes increase low-income individuals' desire to play the lottery. In Experiment 1, participants were more likely to purchase lottery tickets when they were primed to perceive that their own income was low relative to an implicit standard. In Experiment 2, participants purchased more tickets when they considered situations in which rich people or poor people receive advantages, implicitly highlighting the fact that everyone has an equal chance of winning the lottery.
I think this is an interesting finding.
Comments please.
 

jallman

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All a lottery really amounts to is a tax on people who are ignorant of statistics.
 

Gipper

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Taxes are compulsory. When you have to play the lotto or be fined/arrested, you can call it a regressive tax.
 

Civil1z@tion

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Lotteries are fine because they're voluntary. Personally, I think they're genius. Its a way of getting people to voluntarily give to the government (typically to education), so even if it tends to in effect be regressive its better than just forcibly taking money even if doing so is more progressive.
 

Goshin

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If you drop a buck or two once in a while for a (admitted very thin) chance to win a lot more, and figure that it's going to education if you lose anyway, well no big deal.

OTOH if you only make 13,000 a year and you're blowing $650 a year on lotto tickets... somebody needs to smack you.
 

rivrrat

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I like to gamble, so I buy tickets. But then again, I can afford to.
 

Renae

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I buy 2 $3 "Cashword" scratch tickets when I fill up. My wife and I get a kick out of them.

I spend $4 every 2 weeks on Powerball or Megamillions. 1 QP with multiplier and my personal number. Just Tuesday I won $24 on a ticket. And $450 on one last year.
 

Civil1z@tion

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If you drop a buck or two once in a while for a (admitted very thin) chance to win a lot more, and figure that it's going to education if you lose anyway, well no big deal.

OTOH if you only make 13,000 a year and you're blowing $650 a year on lotto tickets... somebody needs to smack you.
Yea I do that, though I actually have gotten a little money back (I've gotten about $7 back so far :) ).
 
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