Spatzimaus
First Post
Agback said:So i am reluctantly forced to consider such hypotheses as a systematic mis-perception of risk.
I'm not disagreeing with you on that. Far too many people gamble more than they can afford to, perceiving it as a minor expense when in reality it adds up. But, that's not true of everyone (I'd argue it's not even true of the majority), and that was the flaw in the original statement; it's not that lotteries are inherently a bad choice, as the "tax on the stupid" sort of comments imply, it's that in many situations it's not a good choice.
Let's take an example.
I'm a graduate student. I earn just enough to live decently on, supplemented by a little money I saved away from a job I had between undergrad and grad school. It'd be pretty stupid for me to play the lottery right now, all things considered. I just don't have money to spare, so I'd have to dip into the money I allocate for "essentials".
Within the next year, I'll get my PhD. My salary will at least double at that point (more likely triple); it's not going to make me "rich", but it's going to be a dramatic change. While I'll be able to buy nicer stuff, I'm not going to immediately switch to a far more expensive lifestyle, so I'll have a certain amount of money that can be spent on other things. Using a little of the money to play the lottery at that point wouldn't really be a bad thing, not that I will.
And again, this ignores the non-financial aspects. Some people ENJOY gambling. My grandmother, before she died, played maybe $10 or $20 per week, just for fun. She didn't need the money or anything, it was just something she and her friends did. Then, look at all the people who go to Vegas, because there's a whole gambling "experience" there; in college we'd head off to Vegas every once in a while (I was in L.A.) and gamble a hundred dollars or so. More often than not we'd lose overall, but it was still fun.
If you're going to ignore the enjoyment aspect of it, then I'd like to point out many of the other things in life that cost you money in exchange for enjoyment. Girlfriends, for instance; what are your chances of making a fortune there? Now, the main reason I won't play the lottery is because I don't enjoy that form of gambling, but not everyone's the same.
If you're intending to make money over time, then sure, lotteries aren't a good choice. Join a mutual fund, buy a CD or some bonds, tweak your 401(k), whatever earns you a profit higher than the inflation rate. But viewed as a hobby, it's not that bad; the cost per week is relatively low (for most people, that is), and there's always the chance you'll score big and be set for life, no matter how slim.