RATS IN A CAGE

I got $50 on the Eagles this week. 

I tend to agree with most of the article's written on here , but not all. This one is sort of half-way between.

Now let me retort. Gambling will always be around, either the government runs it or some mafia gang does, etc. Now i dont agree on how they  promote it, it shouldn't be advertised like it is. But it should always remain legal. Maybe they should take more money from the union blow hard's and give to gamblers  help  centers, and back to the poor. But in reality the dumb and ignorant might be smoking crack with that money instead of giving it to some indian.

" a fool and his money are soon parted"

My last 'gamble' was $2,000 of junk silver coinage, all of it before 1966 and some quite early when the content was high.  If I spent the time, I'd likely find some pieces have collectible value over and above spot price, but this is a long-term hedge. Along with the rest.

And yeah, very occasionally I buy a lottery ticket, wot the hell if the odds are millions-to-one. Some bloke in Townsville had the one jackpot winning ticket last month, $20 million. Probably be bankrupt within a year, likely divorced and so on. That's the typical outcome I've seen in a number of cases. Be careful what you wish for, eh? But I understand the psychology of gambling, for some, not so much "get rich quick without hard work" as the subliminal desperation that your time investment in a job yields little to show for it.

And yes, there are the other sort. Marion and I bailed out a friend who ran up a $10K shortfall. But she controlled the household expenses and poor hubby hadn't a clue. So we saved her ass and her marriage and eventually did get paid back.

It's hard for most people to maintain the integrity of frugality and hard work when celebrity culture, elitist culture, including corrupt politicians and banksters and a compliant MSM provides a different example.

Virtue may be its own reward but it doesn't feed the bulldog.

Part of my rage happens when people like Jim primarily blame the unions for the country's problems. Management makes tens of millions  upon millions [and retire to luxurious lives] even when they tank a company; taxpayers pay out trillions to bail out banks and investment companies who continue to pay millions in bonuses and salaries to their deadbeat and corrupted highest managers, and we're supposed to be enraged that people who made a five digit salary for 40 years in physically demanding jobs get decent pensions.

I'm neither republican nor democrat. But it strikes me as tragic and ill-informed me that republican/libertarian  types can blame the unions for all the troubles.  All analysts who take this ridiculous position should be forced to donate one of their children for a few years to a sweatshop making sneakers for Nike. Then talk to me about the unions.

I truly believe in freedom of choice,I believe gambling is OK. I wish the government took their fat paws off everything- sin taxes on cigarettes and alcohol, gambling and lotteries, etc.

The bottom line is that these people are desperate for additional $, they are not gambling for entertainment purposes. They don't understand that the house is in control.

I dont care if people gamble and if they do they should not be bailed out -- same goes for that stinking pile of greed and corruption, wall street, that masquerades as free market 'capitalism'

Government is robbing the most susceptible in our society, the young, the old, the poor, and the ignorant, to fund their grand plans.

Nanny is empirical that way.

 You forgot the FX, commodity and equity markets. That will make your revenue nums soar!

If it wasn't for the state run lotteries, many wouldn't have any hope at all!

Without hope, people tend to get restless and more open to revolution.  Government knows exactly what it is doing with lotteries - pacifying the masses.

Thanks, Jim

I agree with other posters that gambling is an eternal evil and will always ruin some. But I also assert that it is a sign of a sick society that governments rely on this and promote it as a source of income. Many gamblers, who would never dream of dealing with criminals, will buy lottery tickets or visit casinos.

I live in Europe now, and can tell you that, although there are state lotteries, they are for small stakes and never generate the excitement and news coverage of, say, a big powerball jackpot. I last lived in the states in the 90s, and recall seeing long lines at convenience stores when the jackpots were high. Man, that's pitiful.

Criminalizing gambling will be no more successful than Prohibition or the War on Drugs.  Our primary problem is a government that inserts itself into all aspects of peoples lives, discourages personal responsibility and tries to presume moral authority. 

How much of an average $13,000 annual income is in the form of government transfer payments in this country?  My guess is a very large portion of it.  I'd like to see if people would be more reluctant to spend 9% of their income on lottery tickets if they knew another check wasn't going to magically appear in the mailbox next month.

The problem is people's willingness to go along with perpetual government expansion, not "sin" taxes.  I'm sure the state of Pennsylvania would prefer to raise income taxes across the board, you know, get a larger and more reliable source of revenue.  That's a hard sell, especially in tough times like this.  Far easier to tax more gambling or maybe increase taxes on the rich.

As a form of taxation, I think "sin" taxes are actually pretty good.  They are voluntary.

An afternoon/evening at Caesars Palace in Vegas watching 20 football games and the MLB playoffs while being served free beer by scantily clad models is an experience all men should have at least 5 times in their lifetime.

Again, I am stunned by the amount of research put into this stunning presentation but more importantly, such a completely overlooked invisible economy. People talk about lotteries being another tax on the poor (it is) but when you see the whole picture presented like this it is truly devastating. It makes it easy to see that the American Dream and the American Nightmare go hand in hand.

 The poor will always be with us. Gambling by the masses shows the same level of judgment that the massive debt load carried by the masses shows.  If they don't blow it on gambling, they'll blow it on booze, drugs, smokes, etc.  You cannot help those who will not help themselves.  The true problem is that these same people have the right to vote.

One of the problems with any government is that it must be paid for.  That's one of the reasons 'less is better' when it comes to government.  Funding government is done with taxes in various forms.  Gambling is one of those forms.  We could call it a "stupidity tax."

I'd prefer a system where government is very small and taxes are very low and all taxes are above-board and not hidden in various ways.  But, of all the problems we face, gambling isn't very high on the list.

I agree with everything you say Jim, there are no taxes on profits in the UK  on spread betting the markets which makes it inviting.

What l find disgusting is that the government is playing the same game by giving out money to banks to continue playing the same game when they played before and lost all. This is hard working American tax payers that pay for their playing.

It's a game and a very expensive one at that when you lose.

The game the US bankers are playing with bailout money is no different to what Nick Leeson did to Barings, but there is a slight difference, no one will be going to jail for it when it all goes pear shape.

Taking risk is part of our human make-up. This nation would never have been discovered without risk. Without risk everyone might still be living on the East Coast. Without risk what would ever have been invented? Risk, gambling to me are the same. What I do object to is the government trying to tell me risk is wrong. Smoking, overweight, drinking  and on and on. I prefer freedom and the ability to make  choices, good or bad. The government is slowly but surely trying to eliminate risk  and destroy freedom. So far, it is doing a pretty good job.

You forgot to mention the market  casino and wall street as the gambling of the rich. Trillions are gambled and won/lost every year in this charade. Maybe the odds are a little better? What about the central banks and their monopoly money. If the government and the banksers and wall street with all their smarts are the leaders that everyone else is looking up to, then the masses are just repeating what they are learning.

Everyone complains that they are just following the smart guys, when they are questioned about their motives.

The country/world needs moral leaders. It seems that this is really the heart of the problem.

A choice top vote for a lesser of two evilas is still a vote for evil.

We need to throw the corrupt out of office. Most Democrats and Republicans are bought and paid fpor, no wonder there is no change. Vote for independents and throw out all incumbents!

Time for a REAL change!

Lets face it . Government employees and politicians are not going to lay themselves off. They will fight tooth and nail to keep the money coming in, be it by borrowing it, taxing it or squeezing it out of the poor dumb gamblers. Best to presume things will get much worse and to look after oneself and one's family.

In a civilized world, those who indulge in self-destructive behavior, such as, say, taking drugs and gambling, would be held responsible for any incidental damage to others, but would have to rely on private charity, if any, for damage to themselves and their dependents.  People rich enough not to destroyed financially by their lack of self-control, would of course still be responsible any incidental damage to others.  This would be management of civilization by incentives, not as at present, by gross interference with individuals' private lives.  Natural Selection would apply in the long run to rid humanity of those unable to survive independently.

Unfortunately, we are now living in the aftermath of civilization.

Sorry, there was an omission in my comment sent a few minutes ago, corrected below.

In a civilized world, those who indulge in self-destructive behavior, such as, say, taking drugs and gambling, would be held responsible for any incidental damage to others, but would have to rely on private charity, if any, for damage to themselves and their dependents.  People rich enough not to be destroyed financially by their lack of self-control, would of course still be responsible any incidental damage to others.  This would be management of civilization by incentives, not as at present, by gross interference with individuals' private lives.  Natural Selection would apply in the long run to rid humanity of those unable to survive independently.

Unfortunately, we are now living in the aftermath of civilization.

1.  Gambling is voluntary, unlike taxes.  To some degree money obtained via gambling revenues keeps taxes lower and pays for things that otherwise taxes would go for (free college educations, here in GA, for example)

2.  A 100% free 12 year education has been available to just about every American alive today if he wanted it.  A college degree is free to many with any degree of hard work put into getting good grades today.  

3.  It doesn't take a PhD to understand that casinos stay in business by taking in more than they pay out.   And that lotteries are not money losers.   Even the "underpriviledged" are able to comprehend that you can lose money gambling, despite your condescention.

So exactly why are we supposed to "vent our rage" about this? 

The only thing wrong in this picture is that in many states Govn't has given itself a monopoly on gambling, outlawing the competition. 

You're either for liberty, or you're not.   Make up your mind.    Part of what got us in the mess we're in now is people in government who think like this. They think they're going to save us from ourselves.   Then when they can't, they figure they owe us morons who screw up a free ride in life.   Hence, bigger and bigger government.

Casting stones is tricky.  I personally think sin tax is the best tax.  All sin is there 24/7 weather it is legal or not.

Gluttony is legal and very expensive and is a much larger part of the poor's income.  What are we going to do about that?

Take all the fattening things away or make them so expensive they become black market items.

This is a very slippery slope. 

State lotteries dispropotionately take advantage of the poor.  The reality is that the state sponsored lotteries are nothing less than a tax on those that can least afford it. The states spend heavily on advertising to target the minotity gamblers(while not admitting it) and it is a shame. I see hundreds of minorities every week buying pick 3 and pick 4 tickets. That amounts to an average 50% return OF capital(not ON capital) and these people every single week spend most of their paychecks or welfare checks on these tickets .And 99% of those who buy these tickets don't even know what odds are.  Hell, in Vegas, the WORST slot machines return 90% of your money to you, and they aren't targeted toward minorities. IMO, nothing wrong with spending a few bucks on a hundred million dollar lottery jackpot. The chances of hitting the jackpot are the same whether you buy a ticket or not(none). But the poor don't restrict their play to a few occasional jackpot tickets. And they are egged on by the government that claims to be so caring and compassionate. What a crock of shit.

The lottery is a tax on the stupid or desperate. Any responsible government should avoid such methods. These folks are however a politically easy target. Just like the "Very Wealthy are an easy target because most folks think it will not be they who will pay.

If they play games like this above board, what do you think they will do in secret ??!?!?

They will screw anyone they think they can, and get away with it....and that means you and me.

 I also oppose governments raising money in this fashion, but the "poor poor" argument loses me on one point.  Yes, mathematically the lotteries and organized gambling are losing propositions, equivalent to shredding money, but the question remains: what specific spending does it displace, by percentages?  The assumption that absent gambling that the poor's NEXT preferred option would be to spend on something that would materially improve their lives assumes quality of information and rationality belied by the gambling problem in the first place.  What exactly re the number on what  the lottery tax displacing?  

If people want to gamble and play the markets with their hard earned money, that's up to them.

None of us has a right to say whether or not its right or wrong.

What l do object too, is governments giving 100s of billions of dollars to the likes of Goldman Sachs, to give to their top players and gamble it on Wall Street.

That's not their money, it's tax payers money. Also, take a look at their charts and look at the gaps in the stock. They will use unsuspecting investors money to get the price up as well, and then pull the plug leaving the investor holding an empty bag when the crap hits the fan next year. They don't care about people, just lining their own pockets.

What is the stock market but informed gambling?

 Jim- you should write one on the State Controlled Liquor Establishment in Pennsylvania.  Rendell's endless pimping of this corrupt entity, further increases on tobacco taxes, and the "slot parlors" constitute his entire revenue plan.  Not to mention- how many governors have time to do their city's NFL Postgame Show??  And this guy was chairman of the DNC, don't forget...

 One amusing thing here in the Philly area has been the conflict between the Atlantic City casinos and their dealers unions.  The dealers unions are picketing and even running radio ads because the casinos' balance sheets have disintegrated and they are fighting back against union demands.  The radio ads encourage we the sheeple to not go to the casinos that employ the workers.  Perfectly sensible, right?

The Union?  Who else but the UAW.  What dealing blackjack cards has to do with car manufacturing, I have no idea.  

Plummeting Dollars  

http://www.ritholtz.com/blog/2009/10/plummeting-dollars/

Thanks for the invitation to went my rage.- I have none, but I have an urge to say thank you for a thoughtful article.

Scrolling down this side I also see that Jackson has a point worth listening to.

An excellent article.  

It is indeed tragic to see the masses lined up each week to waste their money on lottery tickets.  If they really knew and understood the odds they would not bother.  It is even more tragic to see the mindless gamblers in Casinos and betting shops which is far worse as much more money is usually burned.

For people here to suggest that investing in stocks is the same as lotteries or gambling in a casino is just ridiculous. You might just as well say that investing in any asset is the same as gambling in a casino.  Those that run this line clearly don't have the first idea about investing and  would probably be much happier pretending they are going to win  by spending up big on lotteries or poker machines. 

Those that buy assets at the top of market peaks, or when assets are going through an overbought phase(like current stock markets), are not gamblers - just really stupid investors. ( Yes - if you are buying stocks right now you are very likely going to get burned in the not too distant future).

Forgot to mention - the Mouse Food System picture at the bottom  is priceless!!!

Yes - you have got to love the Rat Food analogy.  But then many rats are probably smarter than most punters.

I agree 100% on this gambling. The Fed and State and all gov should stay out of it and shut down all large operations. No bookies either after watching "Lucky Number Slevin" last night - was a great movie about the downsides of gambling. Office bets are fine etc. on a personal scale - just keep the pros out of bilking the poor who think this is there only chance to get rich just be cause "they" allow one in a million to do so. And the schools don't get all the money which is what we were told they would get when these were passed. And the incredibly greedy overhad from the bassturds that run this things is incredible. If you want to gamble go do it in the stock market, THat's where I respectively lose all my money talking about bassturds who rig games ...

JQ, I'm afraid that I become irked by sentences like:-

                                             "Democrats know where there bread is buttered."

Please tell me that this was a deliberate error...........

The horse is out of the yard...  That was one of the arguments when Maryland legalized slots.  A regressive tax is hardly the way to properly intervene.  Let's save gov't intervention for running up debts not pilfering from the poor!  Unless it saves some large bird of prey.  Or a cuddly beaver.  Or a sacred football stadium.  Or goes to add an HOV lane along I-95.  Or...

It would be interesting to see how much taxpayer support each of these targeted demographics received.  And how that compares to how much they 'contributed'.  Any way to pull those numbers Jim?

And the Russians banned and just closed all their casinos with just one place somewhere off a million miles away allowed to have it.  Seems that they get it.

Which states do not run a state sanctioned gambling racket?

I can't relate to this article as I've spent maybe $200 in my entire life gambling ... mostly on Basketball March Madness office pools. (Go Hoosiers!!!)   I actually won $300 on year so I'm ahead of the game. 

But, Americans waste probably 5x more money on another addiction ................... pornography.

I'm looking forward to your article on that some day. Of course, include pictures.  ;>)

"Reverse Nanny State Jim" wrote: What I do object to is state and local governments turning to gambling in an attempt to plug their budget deficits caused by doling out ungodly generous benefits to state union workers and frivolous wasteful pork projects designed to get lawmakers re-elected. The facts are that gambling negatively impacts the uneducated poor, senior citizens, and young adults the most.

Object all you want, JQ, but the "uneducated poor, senior citizens, and young adults" voted overwhelmingly for the idiots who created this gambling trainwreck.  And they continue to keep those same morons in office.  And they wouldn't heed a warning against gambling even if Obama said so.

You can't have it both ways, Mr. Reverse Nanny State.  You voice no objections to how people spend their money on legal activities, but object to government helping them spend money on something you have a problem with.  It not only doesn't compute, it doesn't have a solution.......until the whole system implodes. 

Generally, {note: "generally"} having a populace with a disposable income of such a level as to withstand the shock of  100% LOSS in one day, who can afford to wager against the "house" is not a bad thing.  If you keep going back to the ATM, then I think you may have a REAL problem.

LOOK: 

It provides entertainment to those who are willing to try.

It provides employment opportunities where otherwise none would subsist.

HOWEVER:

1.    It mesmerises not only stupid people, but smart people as well.

2.    Even smart people get drawn into flashing lights and the "chance" of the next gamble winning thousands.

Seriously, poker machines should be banned across the board, worldwide.

Just look at the criminal "guilty" pleas in your jurisdiction:  How many of these are related to obsessive-compulsive behaviour on poker machines?

It is going to take 20  years or more for the research to hit the road.

Tax revs from legalized gambling are down an average of 2.6% from FY08-FY09.   It is the first time that tax revenue from legalized gambling has fallen in over 30 years.    Since states are dependant on this money, it only makes their budget situations even more dire because you can bet (pardon the play on words) that their budgets included gambling revs to increase.

I would love to know how much Social Security check money ends up in casinos. You think those who created the Social Security system ever dreamed that a significant percentage of the money would be gambled away? 

Enjoy it now folks, because unless the Federal budget is severely cut, and a steeply progressive income tax enacted soon, the dollar will collapse. Think about this fact. When General Dwight Eisenhower was President, the top marginal income tax rate, if you made over $300,000  (over $3 million today)  was 91%.  Now, when quite a few people make tens of millions a year, and some billions, it is only about 38%.  And you want to know why the National Debt is now over $ 12,000,000,000,000. If you want to see what is really going on in America, watch the CNBC special "Untold Wealth, the Rise of the Superrich" by David Faber. CNBC shows it often on the three-day National Holiday weekends, so people can be off work. You will be shocked. I liked the part when the guy was talking about his $ 20,000 auto tire (yes, one tire). The multi-story car museum was cute too. I don't think that the top rate should be 91%, but we are in a National Debt crisis, and those who can, need to sacrifice. 'Untold Wealth' was even better than his 'House of Cards' special on the housing meltdown, which was also a brilliant piece of work well worth your time.

If you made $100,000,000 last year and Uncle Sam only let you keep $10,000,000  would you quit working? People in 1950 didn't. Of course, it will never happen because, starting in the early 1980's, the very wealthy have controlled Washington with billions of lobbying money, jobs, business deals for relatives, etc.  And now they have transferred the enormous Wall Street investment bank losses, which resulted from the taking of inordinate risk, with the aim of reaping fantastic gains, from themselves, to you, the taxpayer.Thanks to their puppet Congress, YOU took what should have been THEIR losses!  Some guy is on TV right now asking 'why did they lever' (take excessive risk) ?  The answer is simple. It is called GREED. In finance, the greater the risk, the greater the potential reward. They gambled, you lost. Now you, and your children, will be paying for their greed for the rest of your lives.

I don't believe any rhetoric about hard work being the way to get rich.  The richest people I can think of don't hardly work at all.  They gain their wealth by either looking good, in the case of celebrities, or by collecting interest, in the case of investors, bankers, and the like.  I sympathize with this alleged attitude regarding getting rich without doing any work, because that is simply real life.  Gambling allows the little guy the chance to catapult from the lower class to the middle or upper class.  This is a chance that no amount of hard work can provide.  Gambling gives them hope in an otherwise hopeless world.  And we want the poor to have hope, because hopelessness leads to undesireable and often violent ends.

"Now that the politicians and gaming industry have tied up the senior market, they have shifted their focus to addicting teenagers and young adults. TV glorifies poker tournaments on ESPN."

First of all, poker has always been popular in this country. The game is an American tradition. My father taught me to play poker and chess when I was five years old. Second, poker became popular spontaneously because of three things: 1. Rounders 2. Chris Moneymaker 3. the internet. None of these things have anything to do with politicians or the gaming industry, they happened spontaneously. In fact, online poker gaming is illegal, and the US government is trying to shut it down. No US politician makes a cent from internet poker rooms because they are all off shore.

ESPN has been "glorifying poker tournaments," since the 70s, when the World Series of Poker was created. Interestingly enough, most of the major networks have been "glorifying," the Super Bowl for even longer. So what? Football is more popular than ever as well, and people gamble on both. Poker has become popular on its own merits, because people love the game, not because of some imagined conspiracy. It's been recognized as a game of strategy and skill.

Basically, the lottery needs to be abolished and gambling needs to be de-regulated, just like everything else. Problem solved. Get the government out of the way. People should be able to run gambling parlors in their basements for crying out loud. This is supposed to be a free society. If people get addicted to gambling, then they have a personal problem and need to seek help from family, friends, their church and possibly a professional.

"Keeping the ignorant masses sedated with games of chance, easy credit, and welfare checks allows politicians to retain power and control. Despite all of our rage, we are still rats in a cage." 

True, at least for now.  As with the Roman bread and circus (junk food and football in our culture) cages we are authoring our own demise as a country.  It will be painful. 

Excellent article. Another example how Government seeks to monopolize vice. Gambling is on the increase among children, up thier with drinking and drug abuse. State Lotto tickets are the entry method for many of them. I've heard of parents who put them for Christmas stockings  for their children. Which is nothing more than a vicarious method for the parents  to enjoy.

The advertising the states do for Lottery's is as bad as the lottery itself---Using taxpayer funds to promote gambling in the poorest sections of towns and cities--You won't see such advertising in Beverly Hills or Martha's vineyard! And the irony of using such funds to pay for education in public schools! Talk about your mixed messages! Why should kids learn if they can hit the jackpot?

"The $160 billion spent on gambling each year is indicative of the get rich quick without hard work attitude of Americans."

Where do you think they got this $160 billion? From hard work. They can work hard for the rest of their lives, but still, the only chance they ever have of ending up rich is winning the lottery.

The name of the song is not "Rats In A Cage" but rather "Bullet With Butterfly Wings."

Should have done your research on the song name if you are going to quote it profusely.  The US government makes $0 on internet gambling.  Poorly researched article.

One problem I see with gambling is you can see a increase in criminal activity wherever gambling is legalized.

Another is soon after the government realizes gambling can no longer produce significant increases in tax revenue, they will turn to drugs next.  Perhaps their goal is take market share away from drug dealers by replacing doctor care with more prescription care. I've never seen such an explosion of new "illnesses" today and the corresponding drugs being created to treat them (i.e. in trial stage or otherwise).