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So when you look at how poor people spend money, the rational economist would never advocate spending the money on the lottery. The utility is low [...] This m
by jkn 14y ago
So when you look at how poor people spend money, the rational economist would never advocate spending the money on the lottery. The utility is low [...]
This misses the point of the article, which is that gambling should not be regarded as an investment, but as entertainement. But I agree that poor people are possibly more likely to see it the wrong way, i.e. as a good investment.
The result is that the lottery has become a regressive tax.
By the same argument you can conclude that potatoes are a regressive tax since they cost a higher fraction of the poors' revenues.
When you give money to the government with nothing in return (except as a member of the collectivity), that is a tax. Not when you give money to a private company in exchange for some kind of entertainment.
- evandijk70 14y agoIn a lot of countries, lotteries are heavily regulated and the government is the only one allowed to run one.