In May the State of Maryland will commemorate the 50th anniversary of their State Lottery Program. In an ad touting the fun players have had, we’re told that collective winnings have been $31.5 billion. Now, what’s not stated is that the typical ratio in state lotteries for the amount wagered compared to winnings is 1 dollar played amounts to 60 cents in winnings. That’s not too good of an investment. So, in Maryland’s case, since inception, players have lost roughly $21 billion.
This has huge economic ramifications. If Maryland’s State Government had not implemented the lottery system, approximately $52.5 billion would have stayed in the consumer marketplace. Imagine then, how much small businesses would have benefited from the exchange of those resources. Also consider how that money could benefited local charities. Perhaps people might have been more inclined to save, invest, and make wise decisions with their money.
Then there’s the aspect of productivity. In the marketplace, accountability is linked to productivity. Businesses must effectively utilize resources to produce and market their product to draw in consumers. Consumers on the other hand, must be productive to gain resources so they can participate in the marketplace. So, clearly initiative is required from all participants in this setting for the market system to work effectively.
However, when playing the lottery or gambling in other ways, participants devalue their resources by trading them in for chance meaning they’re not insisting on productive exchanges. So, the more the lottery system in Maryland perpetuates along with that of other states not to mention other forms of gambling found in casinos and now enhanced sports betting, our economy will continue to be based more on loss resulting in greater hardships and missed opportunities.
In His Image 