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State lotteries transfer wealth out of needy communities, investigation finds

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Re: State lotteries transfer wealth out of needy communities, investigation finds

#101

There's a simple answer: Offer a lottery with a high payout rate and flatten jackpots to the extent they don't cause a shift into other worse sorts of gambling. The total amount of money transferred to support government programs makes up less than 0.5% of total government revenue; it's trivially replaceable.

So remove the very reason why people pay the lottery in the first place? I actually think this is a good idea as long as the gov keeps the ban on black market lotteries

Increasing payouts should bring more players though it would be offset by eliminating the advertising that currently consumes some of that revenue. Flattening jackpots would have a negative effect but we just need to optimize for being above the point at which there's competition instead of maximizing lottery revenue.

Re: State lotteries transfer wealth out of needy communities, investigation finds

#102
post #51

Earlier quoted context omitted.

Honestly its so much wasted human capacity. Its not even the case that we don’t have enough: there’s enough food to adequately feed everyone. Its a logistical problem and when markets are left to their own they will obviously lead to situations where only the cheapest products win out (not the most nutritious).

> lead to situations where only the cheapest products win out (not the most nutritious). Vending machine owners stock what sells. People vote with their dollars and their attention. We are free to choose what we eat, and free to throw out the TV. Most enjoy watching the 'breaking news' propaganda rather than putting in some effort to cook a simple meal at home. Your body, your choice.

Sometimes, but not always, top down approaches are more efficient and lead to better outcomes than bottom up approaches.

Re: State lotteries transfer wealth out of needy communities, investigation finds

#103

There's an interesting theory that the solution to this is to subsidize the lottery and improve the odds significantly. Take to the extreme and you could essentially implement UBI this way. I also don't think poor people are wrong to think a chance of getting a life-changing amount of money is a worthwhile luxury spend compared to the other available options. They may be wrong about the probability, but instead of fi…

I am very skeptic of this theory as a lot winners of lottery’s end up in enormous debt after few years due to horrible mismanagement of their funds. Why take this odd route and not just directly implement UBI if that is the goal?

The "where are they now" stories have been getting more positive over the years. It seems like more of the winners are middle to upper middle class and also awareness of the curse of past lottery winners has made winners more aware that they need a plan so they don't end up penniless a few years down the road.

Re: State lotteries transfer wealth out of needy communities, investigation finds

#105

Being raised in what I believe to be one of these communities this feels very true. In Pennsylvania this supposedly supports seniors, but seniors often are the ones gambling. The most frequent shops for selling lottery tickets are also tobacco stores. I find it hard to resist a scratch off from time to time myself. I don’t know what the solution is, I know it gives people hope and excitement. Even if they think it’s…

> what the solution is

No loss lottery run by local bank or credit union would be a good start.

https://freakonomics.com/podcast/is-america-ready-for-a-no-l...

https://pooltogether.com

Re: State lotteries transfer wealth out of needy communities, investigation finds

#106

The argument for the state having a monopoly on lotteries is that if there wasn’t a legal lottery illegal lotteries would proliferate. Thus to protect people, the state should run it as it would then be guaranteed to be fair and free of the criminal element (mobsters, etc.). Ideally, the lotto would just take in enough to pay the winners and administrative expenses. However, most states have abused this monopoly and…

State-run lotteries are ALWAYS about the transfer of wealth and property from the poor and marginalized to the wealthy and connected. This was true during colonial times, this was the manner by which the state of Georgia divvied up land stolen via Indian removal, culminating in 8 substantial (and all rigged) lotterying of land that can only be characterized as stolen under the threat of muskets and bayonets. It's not a coincidence that lotteries became increasingly unpopular. This was then deliberately conflated with private lotteries ran by blacks, immigrants, and the poor where the house odds were good but not anywhere close - to the tune of 1 in 900 compared to 1 in 14 million or so for your typical 6 out of 49 game, made a moral issue, then a tax issue (giving more reason to raid minority neighborhoods), until the 1970s when essentially states began seeing the system as a two-birds-one-stone scenario both in raising revenue and also booting out what was otherwise an illegible parallel society that it had little direct way to profit from or exercise control over.

The really interesting counter-example - or really, the most incompetent series of lotteries ever ran by a state - was the excise farming schemes the British colonial administrators ran in SE Asia, in particular Penang and Singapore and further afield in Malaya, between the 1840s and officially 1903. Excise farming is basically the lotterying of monopolies on the vice trade for fixed periods of time, which existed since the 1500s and periodically gets brought out (prominently under Cromwell, and a bit during the restoration), except because the decline of the East India Company and the lack of civil servants and administrators who had a working knowledge of Chinese, which had become the biggest financial players and essentially realized that the authorities were unable to make sense of the place-of-ancestral-origin system that had little to do with what the British were familiar with (like blood quantum) and inadvertently enabled the same native-place association or Landsmannschaft (we need an English word for this, btw) to simply dominate certain vice trades by the simplest subterfuge - by leveraging the comparatively fluid role personal names represented. Yes, it took more or less an actual case of "all Asians look alike" for a state lottery to fail. Carl Trocki's works are the authoritative research on this subject and time period for those interested in what probably represents one of the most mind-boggling peacetime self-owns by two successive governments that in mainstream academic discourse (outside Subaltern, Asian, and Diaspora/Migration studies, which are arguably niche and very much interdisciplinary), represents the archetype for hegemonic power relationships in practice. I suppose one can also chalk it up as a lottery win there, a rare one, but someone does usually actually win the lottery eventually.

Re: State lotteries transfer wealth out of needy communities, investigation finds

#108

It’s honestly shocking how many facets of American culture are predicated on addiction for profit. Alcohol, food, social media, gaming, opioids, cannabis, nicotine, gambling. It is extraordinarily difficult to find a sense of perspective independent of the influence of these industries.

It's pretty amazing how the states are in the business of: booze, tobacco, weed, gambling and gas Imagine what the total revenue from just those 5 things is? It's got to be like printing cash and yet in most states and cities across the US have crumbling infrastructure, failing schools, underfunded pensions and budget deficits. This is in addition to all their other more regular tax regimes. Where does the money go?

It's not as much as you'd think. For Illinois, lottery alone nets something like $3 billion, of which ~$700-750 million goes to funding public schools. Public schools expenditures are ~$35 Billion/year. So, less than 1/35th of costs. Add in the alcohol, tobacco, weed, gambling taxes, and you still not even close to covering half the state's school expenditures.

Granted, Illinois is perhaps the most fiscally screwed state, so might not be best example...

Re: State lotteries transfer wealth out of needy communities, investigation finds

#109

Earlier quoted context omitted.

> lead to situations where only the cheapest products win out (not the most nutritious). Vending machine owners stock what sells. People vote with their dollars and their attention. We are free to choose what we eat, and free to throw out the TV. Most enjoy watching the 'breaking news' propaganda rather than putting in some effort to cook a simple meal at home. Your body, your choice.

Sometimes, but not always, top down approaches are more efficient and lead to better outcomes than bottom up approaches.

Top down means government control - socialism, at best.

Re: State lotteries transfer wealth out of needy communities, investigation finds

#110

Earlier quoted context omitted.

Sometimes, but not always, top down approaches are more efficient and lead to better outcomes than bottom up approaches.

Top down means government control - socialism, at best.

Socialism is when workers control the means of production. That's not really the case in this example. Top down also doesn't mean government control. Corporations are driven top down, from a CEO down to the subordinates at each layer. Given a defining goal, they can be very efficient. If each subordinate was supposed to figure out what to do, it's not very efficient or effective.
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