I saw a headline indicating that Illinois was about to get out of the lottery business.The state’s plan is to turn over the running of the lottery for the next 75 years to private investors in exchange for a huge sum up front — perhaps $10 billion. Indiana is considering following suit. The states seem to think they can do more with the money if they get a big balance all at once, albeit less money than the lottery would earn them over time. I understand that line of thinking.
Illinois wants what virtually every lottery winner wants: the money up front. Although now some lottery winners can take a large lump sum right away (of course, much less than the supposed value of the winning ticket), for years they were paid their jackpots in annuities over 20 or 25 years. There’s a major difference between getting a million dollars right away and getting 20 annual checks for $100,000 or so. Yes, both amounts are considered fair, but the lump sum is much preferable: you don’t have to wait to buy your mansion, or (more prudently) you can invest it, earn interest on it, and be protected against inflation.
<a href="http://www.info-on-global-warming.com">Global Warming Information</a>
Friday, November 30, 2007
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