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Neil Irwin writes at the NYT that financially literate people like to complain that buying lottery tickets is among the silliest decisions a person could make but there are a couple of dimensions that these tut-tutted warnings miss, perhaps fueled by a class divide between those who commonly buy lottery tickets and those who choose to throw away money on other things like expensive wine or mansions. According to Irwin, as long as you think about the purchase of lottery tickets the right way — purely a consumption good, not an investment — it can be a completely rational decision. "Fantasizing about what you would do if you suddenly encountered great wealth is fun, and it is more fun if there some chance, however minuscule, that it could happen," says Irwin. "The $2 price for a ticket is a relatively small one to pay for the enjoyment of thinking through how you might organize your life differently if you had all those millions."
Right now the Multi-State Lottery Association estimates the chances of winning the grand prize at about 1 in 175 million, and the cash value of the prize at $337.8 million. The simplest math points to that $2 ticket having an expected value of about $1.93 so while you are still throwing away money when buying a lottery ticket, you are throwing away less in strictly economic terms when you buy into an unusually large Powerball jackpot. "I am the type of financial decision-maker who tracks bond and currency markets and builds elaborate spreadsheets to simulate outcomes of various retirement savings strategies," says Irwin. "I can easily afford to spend a few dollars on a Powerball ticket. Time to head to the convenience store and do just that."
(Score: 2) by arashi no garou on Friday February 13 2015, @12:48PM
So what I'm getting from your rambling, nearly incoherent comment is "Duh I say it's a tax so it's a tax and you're a doodoohead!"
Sorry bud, you're going to have to elaborate, and my that I mean leave the neocon conspiracy stuff behind and tell me again how I'll go to jail and pay fines for not buying that lottery ticket.
(Score: 2) by aristarchus on Friday February 13 2015, @06:53PM
OK, I will use smaller words to help you understand. You see, you don't have to buy lottery tickets. Why is that? Because you are smart enough to understand the odds, and if you do buy them, it is the mindless entertainment the FA says it is. My point is that if you were more stupid than you are, it might not be a choice, since you would not even be aware of what you really were doing. I have known people who's financial plan was "when I win the lottery". There are enough other comments making this point here already. Remember, it is not just about you.
(Score: 2) by arashi no garou on Friday February 13 2015, @07:29PM
You see, you don't have to buy lottery tickets.
Thank you, you just made my point. You don't have to buy tickets (it's not compulsory), therefore it's not a tax. So you agree with me.
(Score: 2) by aristarchus on Friday February 13 2015, @09:07PM
Your point is missing my point. It is not a tax on _you_, but it is a tax on stupid people. Lets say a tax on alcohol is not compulsory, you can always just not purchase alcohol. If you are an alcoholic, however, this is not an option, so the tax is compulsory. See the analogy? But lets not start blaming the victims of these selective taxes, we should criticize the nation that deploys them.
(Score: 2) by arashi no garou on Friday February 13 2015, @11:53PM
It's only a "tax" in your mind because you are calling it a tax. Just because you wish something to be true so you can prove a point, doesn't make it true. If you call up the state tax assessor's office to discuss the lottery tax, they will explain to you that no such thing exists, and possibly call your mental hospital and remind them of your phone call limit for the month.
Grab a dictionary or wikipedia and look up the definitions of "tax" and "lottery". Here, I'll save you the trouble, first hit on Google:
tax /taks/
noun
a compulsory contribution to state revenue, levied by the government on workers' income and business profits or added to the cost of some goods, services, and transactions.
lot·ter·y /ˈlädərē/
noun
a means of raising money by selling numbered tickets and giving prizes to the holders of numbers drawn at random
If you don't like the lottery that's fine, don't play it, vote against it. But making up baseless facts to support a nonexistent argument is folly on your part. But hey, don't let me stop you making a fool of yourself.
(Score: 2) by aristarchus on Saturday February 14 2015, @12:15AM
But hey, don't let me stop you making a fool of yourself.
Thank you, your concern is warmly received!