in pursuit of riches

quick thoughts on lottery games

Many states in America depend upon income from lottery games to support public education and other important social services. The ends seem satisfactory —when you buy a lottery ticket, not only do you have a chance of winning a lot of money, but proceeds are also going to educate children. It seems like a win-win situation.

However, many studies have shown that lotteries actually function like a regressive tax. Someone earning several million a year isn’t going to be tempted by the lotto game, whereas low-income single mothers see winning the lottery as an opportunity out of poverty, and could regularly buy several tickets a week. If their weekly earnings are only near minimum wage, e.g. $250 or so, then $5 is a 2% tax. This may not seem like a lot, but I remember reading about how difficult it was for people to afford the fare increases with public transportation which only amounted to a few dollars each week. Through supposed “voluntary contributions”, the lottery has basically made the poor pay an unfair share of state services.

Meanwhile, studies have shown that lottery winners returning to their same level of happiness as before. The burdens of wealth can cause an undue strain on relationships with family and friends. Lottery winners can also end up poorer than before by buying cars, houses and electronics that they cannot sustain with their income (especially because lottery winnings are often paid out over a long time period so people end up taking out loans to make these purchases). Lower-income winners of the lottery are probably more susceptible to this as they are less educated about proper financial management.

While winning the lottery may promise an end to payday-to-payday subsistence to a few select, it does nothing to alleviate systemic poverty. It dangles false hopes of happiness and riches for the poor and for the middle class. Instead of being content with what we have, we find ourselves secretly hoping for a quick solution to our problems—getting rich really fast and easy.

So yes, lottery games are a good government revenue generator—but do they do any good?



* There was recently a huge lottery jackpot a few months ago. Our office had a pool and despite the fact that several years ago, I had made a decision not to buy lottery tickets, I found myself tempted to participate in my office pool. It didn’t seem like a big deal. It would only be a dollar or two contributions, and I found myself daydreaming about what I could do with all the money—pay off my loans, pay for graduate school, pay off my parents’ mortgage. It seemed so easy and it was so hard not to pull out a dollar from my wallet. But I don't want to support a system that is unjust to the poor, nor do I want to chase pipe dreams of wealth, because I want to be content with what I have. And for all that I do not have right now, I want to trust that God will provide. All those high and lofty things said aside, I did breath a huge sigh of relief when I found out that my office did not win. Life returns to normal. And those dreams of wealth are put to rest, atleast for the time being.