real value of power ball

[Ray Zee]

the real value is unclear. certainly if you consider present value of money and taxes and such your winning ticket only is worth something like a third of the jackpot. so divide the jackpot by two thirds and take away from whats left the chances you split, and then add the smaller prizes and you see it makes a big difference in the total.
but that aside. the real value in powerball. is that it takes money that would be left in poor peoples hands and puts it in the schools hands and public benefit. so its a tax on the poor basically. but one that returns to them something.
but is it really. the poor people stay poor and have little hope of improving their lot in life. but along comes powerball, and everyone has heard of someone that has won it or a big prize sometime. so it gives that ray of hope to the masses, that they too can get out of their situation and find the good life. kinda what religon gives them. the sad part is even the few who do hit it big dont have a clue how to manage their riches, and often it turns against them into unhappiness.

[BruceZ]

The winner in this case was already a millionaire.

[Nepa]

What are the chances of a millionaire winning the jackpot? Esp. a millionaire from West Virginia.

[Ray Zee]

say one in 500 who buy tickets are millionairs. and say millionairs buy ten times more tickets individually. then its one in 50 or 2%. one being from west virgina must be small as i cant imagine anyone living there being rich. (just a joke)

[adios]

I'm fairly certain from an economic viewpoint the lottery e.g. Powerball is an economic drain on society. We had a discussion on the other topics forum some time ago about the utility functions for poor people in that there is some evidence that they have increasing marginal utility. Increasing marginal utility is a sad state of affairs which means to me that savings is useless and you're better off taking reckless gambles than saving money for instance. Yes the lottery does act as a regressive tax on the poor who do participate but it does get returned to them as you state. However, in my mind this way of collecting a regressive tax builds in more beauracracy into govt. which makes govt. less effecient and ultimately it takes money out of everyone's pocket including those in poverty. The other aspect relating to increasing marginal utility for those in poverty is that the lottery ultimately makes the burden on society for addressing the needs of it's poor much greater. IMO it tends to make those in poverty even more reliant on govt. programs that provide the 'safety net.'