The Official Lottery – How It Got Started
When it comes to generating revenue for public works, bo togel deposit via dana bet 100 lotteries are perhaps the oldest method of governmental financing. In colonial America, for example, the proceeds of the lottery provided a major source of funding for roads, libraries, schools, churches, canals, and other projects. In addition, the lottery also helped finance the armed forces and various wars. Despite the many benefits of this practice, critics from all walks of life continued to decry state-sanctioned gambling as unconscionable. Many devout Protestants, in particular, viewed the lottery as immoral. Nonetheless, by the late nineteen-sixties, when state governments were struggling to balance their budgets without raising taxes or cutting services, the notion that gambling might be a good way to raise money gained renewed traction.
In this context, the modern lottery was born. As Cohen explains, the idea took hold among states with large social safety nets and a desire to avoid the ire of their anti-tax electorate. These states saw the lottery as a quick and easy solution to their budget woes. They hoped to grow the gambling business and increase the amount of money they could raise without having to do any actual work or, as is often the case with taxation, annoy voters with demands for more spending or higher taxes.
To this end, lottery marketers promoted the concept that people were going to gamble anyway—that is, they would be forced to do so by the inexorable force of human nature—and that the state might as well get in on the action. They were right. Lottery games were wildly popular, and the more the states spent on advertising, the better the results were.
Initially, critics of the official lottery argued that the government was essentially subsidizing bad habits; they also warned that the high taxes and advertising costs would make lotteries more expensive for all taxpayers, regardless of whether they played or not. However, as the lottery business grew and diversified in the United States, these concerns were largely allayed. Moreover, as the market for lottery tickets became a national phenomenon, state governments were able to reduce the price of a ticket and thereby keep taxes low for most taxpayers.
While there is a real economic need for state governments to raise funds through the lottery, it’s worth noting that the vast majority of lottery revenues go to players. This means that the lottery is a regressive form of taxation in which lower-income Americans spend a larger share of their incomes on lottery tickets than do higher-income citizens. Further, the marketing of the lottery in poor communities encourages those Americans to believe that winning the lottery is an easy way to build wealth and skews the odds of success for everyone. As a result, the lottery is a significant driver of inequality in America.