The Lottery – A Tax on the Stubborn

A lottery is a game of chance in which players pay a small amount of money — a ticket or other form of entry fee — for the chance to win a larger sum. Many states operate state-sponsored lotteries, and some also have private ones. Lottery play is an enormous industry, generating billions of dollars in revenue for the states and attracting millions of participants.

But despite its burgeoning popularity, there are serious concerns about the nature and impact of lotteries. First, the way in which state lotteries are established and evolve can obscure their true regressive nature. Second, the state monopoly over the games and their revenues can promote dangerous behavior and foster addictions. Finally, lottery profits can be used to finance a range of undesirable projects.

In the past, when state lotteries were first introduced, they were often viewed as a way for states to expand services without burdening middle-class and working-class taxpayers. The idea was that the money generated by the games would allow government to pay for things like public schools, road improvements and social safety nets. This arrangement was particularly attractive in the early postwar years, when tax revolts swept the country.

The problem, as the Huffington Post’s Highline reports, is that state lotteries are regressive in both their structure and in their effect. The monopoly nature of the games, which allow only a tiny proportion of people to participate, creates a sort of social class hierarchy that makes it essentially impossible for the average person to make a big win. That, in turn, increases the likelihood that a few players will spend more than they can afford to lose and may find themselves unable to pay their debts.

This has prompted some critics to call the lottery “a tax on the stupid.” This is misleading because it suggests that players don’t understand how unlikely it is for them to win, or that they enjoy playing the lottery regardless of its odds. In fact, studies show that lottery sales increase in recessions and when unemployment rises, and that advertisements for the games are most heavily promoted in neighborhoods that are disproportionately poor, black or Latino.

One reason why state lotteries are so regressive is that they rely on the psychology of addiction. Everything about the way they are designed – from the look of the tickets to the math behind them – is intended to keep people hooked. It is no different than the strategies used by tobacco and video-game makers.

The short story by Shirley Jackson, “The Lottery,” is a chilling account of the mistreatment of a group of middle-aged housewives on their annual Lottery Day. The unfolding of the story reveals the evil-nature of humans, even in conformance with their cultural beliefs and practices. And yet, as humans, we continue to condone such behaviors and to act as if they don’t exist. This is perhaps the greatest irony of all. The lottery is a perfect example of the way in which our beliefs and values can be subverted to serve unintended purposes.