Posts tagged with: Derek Thompson

7figuresAt The Atlantic, Derek Thompson provides some depressing numbers related to lotteries in America. Here are seven figures you should know from his article:

1. Americans spend more on lottery tickets than on sports tickets, books, video games, movie tickets, and recorded music sales combined — $70 billion on lotto games in 2014.

2. In five states, people spend more than $600 dollars per person per year on lottery tickets.

3. The poorest third of households buy half of all lotto tickets.

4. Winners of more than $600 are subject to 45 percent windfall taxes on their winnings.

5. Out of the 20 counties in North Carolina with poverty rates higher than 20 percent, 18 had lottery sales topping the statewide average of $200 per adult.

6. As recently as 1980, just 14 states held lotteries. Today it’s 43.

7. As recently as 2009, lotteries provided more revenue than state corporate-income taxes in 11 of the 43 states where they were legal.

Whether the lottery is, as the old adage states, a tax on people who are bad at math, it is most certainly a tax on the poor. Those who have the least spend an inordinate percentage of their income every year on lottery tickets (estimates vary from 4-9%). Yet while it is irrational for those in poverty to waste their limited resources on a one in 176 million chance, there is something almost rational in the reasoning for doing so. As The Atlantic’s Derek Thompson points out:

Blog author: jcarter
Wednesday, February 22, 2012

Yesterday I argued that since bias is inherent in institutions and neutrality between individual and social spheres is illusory we should harness and direct the bias of institutions towards a free and virtuous society characterized by individual liberty and sustained by religious principles.

One of the ways we can do that in the economic realm, I believe, is to encourage a bias toward entrepreneurship and away from corporatism. As Derek Thompson, a senior editor at The Atlantic, says, “It would be naive to think we can cleanse the law of all biases. But what if the law were biased, not toward the oil and gas industry or the cotton farmers, but toward the creative, the self-employed, and the entrepreneurs?”

Thompson proposes a new framework for competitiveness: