Tuesday, November 27, 2012

If the lotto draw really stimulate the economy?

Millions of Americans think purchasing tickets for $ 425 million Powerball lottery on Wednesday, and it could be that that. A big boost for the 43 countries participating in the

This is not a safe bet.

Americans spend $ 65.5 billion for lottery tickets last fiscal year that ended in June for most countries, almost 10% over the previous year. And the sale of lottery tickets has grown every year since the first state lottery in 1965 - even during the Great Depression, when the sale most of the other elements.

Will receive approximately 25% of the money goes to governments state lottery, while funding for schools to help build programs and even problem gamblers.

It is important fund infusion. But some experts. If you save the state more than push when consumers buy goods and services instead lottery study clearly shows that the answer to this question is a resounding "yes", as Victor Matheson, a professor of economics at Holy Cross.

"People spend disposable income, lottery tickets instead of buying coffee at Starbucks or Best Buy Gadget," he said.

Matheson argues that spending money to help the business, promoting economic activities bet on the tie. While a quarter of the income goes to states and Washington, Powerball 43, which is involved in approximately 60% of the money spent on the notes paid in the form of dividends. Retailers that sell tickets to 5% and 6% sales commission cards, which means that only $ 10 to 12 for Powerball 100 sales opportunities. 9% are more or less the costs of administrative and advertising costs.

Lottery tickets there. Be an important source of funds to states, with a little more than 16 billion dollars by the Treasury Department last year, is approximately 2% to 3% of their total budget, Matheson said it looks a lot. But he said he received the difficulty of income taxes consciousness and political economic environment present, these resources will be difficult to replace.

"[He] revulsion tax increases," said Matheson. "It's hard to see how to eliminate a large part of the state budget and is able to get his money somewhere else."

Subject: new blow to the state budget

Powerball winning a great price this week is a double edged sword cards retailers, said Jeff Lenard, spokesman for the National Association of Convenience Stores. Although retailers appreciate the extra traffic brings the lottery, you can also scare the money otherwise regular customers products with high profitability.

"Convenience stores to sell," he said. "I do not want to scare anyone buy a cup of coffee."

However, Leonard said many shop owners the opportunity to look ahead to reach new customers. He said the busiest days were record stores a year in March, when Mega Millions lottery competition was winning a record $ 656 million.

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