Lotteries and Merit

Thursday, April 19, 2007
One of my favorite industries to criticize is the state-run lottery business.

Philosopher William F. Vallicella writes the following: “Your chances of a significant win are next-to-nil. But suppose you win, and suppose you manage to not have your life destroyed by your ‘good fortune.’ The winnings are arguably ill-gotten gains. The money was extracted via false advertising from ignorant rubes and is being transferred via a chance mechanism to someone who has done nothing to deserve it” (HT: the evangelical outpost).

One could of course argue that the winner did take the superficially meritorious action of risking a small amount of money for the potential for a huge reward. Lottery players do at least have to “opt-in.” Perhaps that’s the action that accrues some semblance of desert.

But then again, if Vallicella is right about the nature of the system and its state-sponsored advertising, in the larger sense participation in such a corrupt industry might overshadow any meritorious action.

Theologian Dietrich Bonhoeffer wrote that in modern life characterized by the lack of meaning,
One gambles with the future. Lotteries and gambling, which consume an inconceivable amount of money and often the daily bread of the worker, seek the improbable chance of luck in the future. The loss of past and future leaves life vacillating between the most brutish enjoyment of the moment and adventurous risk taking.

Add to those effects government sponsorship and promotion, and you have a pretty foul mix.

The John Locke Foundation recently published a report linking lotteries to high poverty and high unemployment in North Carolina counties. See the case of Jack Whittaker for someone whose ruin was occasioned by the influx of great wealth.

Even so, philosopher David Schmidtz expresses a way in which the “merit” of lotteries shouldn’t be accrued to the actions leading up to the windfall, but rather following it. Speaking of what he calls transitive reciprocity in his recent book, Elements of Justice, Schmidtz writes,
Having received an unearned windfall, we are in debt. The moral scales are out of balance. The canonical way to restore a measure of balance is to return the favor to our benefactor, as per symmetrical reciprocity. However, the canonical way is not the only way. Another way is to pass the favor on, as per transitive reciprocity. Transitive reciprocity is less about returning a favor and more about honoring it - doing justice to it. Passing the favor on may not repay an original benefactor, but it can be a way of giving thanks (83).

Schmidtz leaves us with a picture of the lottery winner as one who has inherited a responsibility to act in an attitude of thankfulness and gratitude, passing the favor on to others.

I like that.
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Well, Allow Me to Re-tort

Tuesday, April 10, 2007
Last month the Pacific Research Institute released a report estimating that costs associated with the American tort system exceed $865 billion per year (HT). Check it out for a detailed breakdown and comparison of these costs with other sectors of the economy and government spending. (Here’s a WSJ op-ed from the authors of the report.)

ABC’s 20/20 had a segment last week on the largest lottery winner in history, Jack Whittaker of West Virginia, who won $315 million in 2002. It’s a sad story for many reasons, but I want to point out one aspect of Whittaker’s tale.

At the time of his jackpot, Whittaker owned a successful construction company that was “doing $16 million to $17 million worth of work.” According to the story, Whittaker “enjoyed years of success with few complaints, but less than a year after winning the lottery things began to change.”

“I’ve had over 400 legal claims made on me or one of my companies since I’ve won the lottery,” said Whittaker.

When asked why that might happen, Whittaker said it’s because “everybody wants something for nothing.”

Rob Dunlap, one of Whittaker’s many attorneys, said Whittaker has spent at least $3 million dollars fending off lawsuits.

Another recent development in tort news is the mainstream acceptance of animal law, which will likely be front and center in any class-action lawsuit resulting from the poisoning of thousands of pets via Menu Foods products. Are pets persons or property?

Amy A. Breyer, one of the only full-time Chicago-based attorneys who specializes in animal law, says that when animals are considered property, as they are in Illinois, they have no voice in the courts.

For more reading on the devolution of the American tort system, check out Trial by Fury: Restoring the Common Good in Tort Litigation, by Ronald J. Rychlak, associate dean for academic affairs at the University of Mississippi School of Law.
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