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Perhaps, but perhaps it is just because you're almost guaranteed that you are giving basically unlimited money to a previously very poor person who has bad mone
by googlryas 9y ago
Perhaps, but perhaps it is just because you're almost guaranteed that you are giving basically unlimited money to a previously very poor person who has bad money management skills(the demographic that spends the most money on the lottery).
- DaiPlusPlus 9y agoI know many lotteries issue winnings as annuities (often with a lump-sum alternative, I know). But I’m surprised they don’t switch entirely to annuities simply because it avoids all the bad PR the lottery gets from people who mismanage the money. It’s probably better for the economy too as it’s harder to irresponsibly spend $20k every month for the rest of their lives than a $10m one-off payment: thus maximising utility of money.
- pfarnsworth 9y agoIt's trivial to convert an annuity into a one-time lump sum payment, it's basic finance. Plus they would probably rip off the annuity holder as well by giving a much lower amount.