Effects of Gambling on Economy

[Nottom]

Have you looked at the average Vegas Tourist? They are mostly middle-class.

Of course a tourist who gambles is definately a lot different than a local, so your hypothesis might be quite true in that case.

[ACPlayer]

Try the following:

Go to www.google.com
Search for "gambling impact"

You will see results from National Gambling Impact Commission and lots of other sites.

Good luck.

[The Dude]

For anybody else interested, I have found one study so far that is exactly what I'm looking for. It is very methodical and detailed and seems to have a balanced approach. It was conducted by the Australia Productivity Commission at the request of the government.
Read the 60 page summary here.

[adios]

I guess Nevada would be a bad example of gambling being bad for the community [img]/images/graemlins/cool.gif[/img].

[AmericanAirlines]

Hi Adios,
On a serious note... the entire gambling industry really does nothing but cause money to change hands (well after the building are all built etc. there's at least some value created there).

Vegas is different from "local casinos" in an important way.

Vegas is a tourist destination... thus money from outside the local economy is brought in. (In some sense all growing economies have to do this. Shuffling money around doesn't produce growth. Also, growth cannot continue forever... but that's another discussion on "how can we build an infinitely sustainable economic model?".)

In the local economy scenario, money will just be siphoned off to the richy riches that own the casinos.

The folks in Colorado recognized this and recently voted down a "slots at the race track" ammendment.

Sincerely,
AA

[AmericanAirlines]

Well, you've hit an important point in a sidewise manner.

The rich do what they want because the can afford to. The poor do what they want because they don't care.

Consider children and wedlock. Richie Riches have kids and divorce when they want because the can afford it. The poor have welfare.

That leaves us middles to fund the whole thing. The rich exploit the middle through profit on goods and profit on labor and tax structure. They set the prices for goods and salaries and have the most tax loopholes.

The poor exploit the middle through welfare and tax structure.

So that leaves the middle stuck with such concepts as "monogamy", "responsible spending and saving" etc. while the the other two groups party it up. The middle being brainwashed to be "responsible worker bees".

Taken from 1 10,000 ft view this is perfect. The richy riches setting the rules take from the middle and give some to the poor. That way the middles never get into the upper class and cause them trouble. And the lowers never get quite hungry enough to revolt.

Can you say, "mouse in a wheel"?

I knew that you could.

[img]/images/graemlins/grin.gif[/img]

Sincerely,
AA

[The Dude]

AA,

I can't help myself but correct you on several points.

[ QUOTE ]
... the entire gambling industry really does nothing but cause money to change hands (well after the building are all built etc. there's at least some value created there).

[/ QUOTE ]
You're ignoring the entertainment value of gambling. If you're willing to say this about gambling, then you must say the same about movies, theatre, musical concerts, and other elements of the entertainment industry. Those who own the casinos generate wealth by providing a service to those willing to pay for it... in theory, that is. In reality, you can't put gambling in the same box as other forms of entertainment, because of its adverse affects on so many. But you cannot deny its entertainment value.

[ QUOTE ]
Richie Riches have kids and divorce when they want because the can afford it.

[/ QUOTE ]

You should read the book "The Millionaire Next Door." It is the largest and most comprehensive study ever done on millionaires in the U.S. Those whose net worth is over $1 million have significantly lower divorce rates than the rest of the population. So many of your assumptions about those with money will be shattered. I know mine were.

[ QUOTE ]
The rich exploit the middle through profit on goods and profit on labor and tax structure.

[/ QUOTE ]

So we should prevent rich people from employing others or putting mark-ups on products? Sounds like a good business model to me! [img]/images/graemlins/confused.gif[/img]

[ QUOTE ]
They set the prices for goods and salaries and have the most tax loopholes.

[/ QUOTE ]

I used to work in sales for a tax firm. There are countless legal and legitimate tax reduction opportunities for middle and lower class Americans. The problem is we hardly ever take advantage of them. To say that middle class Americans are not able to qualify for tax breaks like the rich are is simply not true. In fact, the more money you make, the harder it is to keep your income tax expense at a reasonable percentage of your gross income.

Now, I'm not rich, nor do I have anything against taxing those who are. But your statements simply don't fit with the way things really are in this country. Sorry to burst your bubble.

[clovenhoof]

No, that's not quite right. There's another variable in the mix that gambling affects in a positive way -- velocity, or the speed at which money is transfered from one person to another. While there's only X amount of dollars to be spent, the presence of gambling provides an extra outlet for spending that separates some people from their money who otherwise would have saved it, or spent it on something that sends it into the economy at a slower rate, like paying off a mortgage or investing in a GIC or something.

Gambling also results in far more money going "back" into the economy than, say, Best Buy, because a big chunk of bets waged get transfered to other players, who win (at least temporarily). I believe there's little dispute that gambling winnings are generally treated like windfalls, and get spent on stuff that the person wouldn't have bought in a more responsible manner (like, saving it, then spending it once enough money to buy the widescreen tv has been accumulated.)

'hoof

[The Dude]

Good point! The number of times money changes hands in a year does affect the growth of the economy. I had not considered that, but you are definately right.

[Copernicus]

[ QUOTE ]


Taken from 1 10,000 ft view this is perfect. The richy riches setting the rules take from the middle and give some to the poor. That way the middles never get into the upper class and cause them trouble. And the lowers never get quite hungry enough to revolt.

Can you say, "mouse in a wheel"?



[/ QUOTE ]

Should you change your name to "Marxist Airlines"? Sure you should. On your way to an economics lesson.