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A savings account with prize interest is still a tax on uneducated people. The "educated" person will look at the data, realize that they are paying for that p
by jpollock 8y ago
A savings account with prize interest is still a tax on uneducated people.
The "educated" person will look at the data, realize that they are paying for that prize with a lower interest rate, and switch to a different product.
I know I did - I realized that the savings account paid a lower interest rate to compensate for the prize and decided to not play.
Example from New Zealand: http://www.bonusbonds.co.nz/ http://www.bonusbonds.co.nz/
They don't have any guaranteed interest!
Analysis: https://www.moneyhub.co.nz/bonus-bonds.html https://www.moneyhub.co.nz/bonus-bonds.html
Term Deposit Rate from same bank:
https://www.depositrates.co.nz/by-provider/6/anz https://www.depositrates.co.nz/by-provider/6/anz
- froindt 8y ago>A savings account with prize interest is still a tax on uneducated people. But people aren't completely rational. Playing the lottery isn't something a completely rational person would do. In general, people with lower incomes have less education. Even highly educated people often have little understanding of the basics of managing money. Given that it's unlikely lotteries will go away anytime soon, I think it's okay to offer "harm reduction" methods. Even if only 10% of people participated, if they began to move up socioeconomically, it may help others develop better habits.
- danieltillett 8y agoIt is not a tax on uneducated people, it is a tax on stupid people. There are plenty of uneducated people who are smart enough to know that lotteries are a scam.