system two

system two
start-up thinking in the enterprise

Monday, 28 September 2009

A stupid tax....

To my mind - the lottery is a tax on the stupid.

Statistically impossible to win, there is no logic in playing an unwinnable game.

With a £1 of disposable income a week, the only sensible thing to do is put it in a savings plan. 2 people doing this from birth would accumulate somewhere in the region of £10k at the age of 30 - enough for a deposit on a modest flat in many areas of the country.

Outside of the practical benefits - regular saving teaches the lessons of thrift, prudence and the importance of being happy now (not relying on some unattainable goal to "make" you happy - American dream anyone?)

We digress.

The point is I'm wrong. Whilst marveling at my partner’s 85 year old grandmother watching the lottery, and being genuinely disappointed she hadn't won, I realised at some stage in life, a tipping point is reached and it becomes logical to play.

The utility one derives from the cumulative effect of compound interest decays with age, whilst the tiny amount of pleasure derived from the (admittedly incredibly unlikely) anticipation of success, presumably remains fairly constant

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