The “No-Lose” Lottery
For this week’s Freakonomics Radio segment on Marketplace, I sent host Kai Ryssdal two envelopes. The first one contained an object that Americans spent over $58 billion on last year: a lottery ticket.
We know Americans like to play the lottery, even though it’s not a very good investment. The odds of winning aren’t great, and the per cent of payment returned to players is way below any casino. But who’s counting? After all, it’s only a couple bucks.
However, our country’s poor savings rate tells us that perhaps somebody should be counting. In this segment, you’ll hear from a group of people who have come up with a way to take America’s love for lottery and match it to a financial product that just might jack up America’s savings rate. Only one problem: more often than not, it’s illegal.
Listen here to find out what the “no-lose” lottery is all about, whether Kai Ryssdal is a big winner, and what the heck is in Envelope No. 2.