explicit govt monopoly rent-seeking (law abuse)

[georgemw at speakeasy.net]

On 5 Jan 2002, at 23:59, Bill Stewart wrote:


> Most state governments also give you a breakdown on the things that
> they spend the money on (with usually some weasel-words to avoid
> indicating that it's proceeds from scamming suckers.
> Usually the establishment of the lottery was justified to the voters
> by saying they'd spend the money on schools and old people;
> usually the actual spending is mostly for prisons (to keep
> druggies and gamblers in) and other disreputable things.
> 

Generally, asking questions like "where does the state spend
lottery money on" is committing an error.  If the sate gets more 
money earmarked for a specific pirpose, it spends less from 
general revenue for that purpose.  Essentially, it's all general 
revenue.


> Also, the Mafia doesn't hypocritically claim that they're
> forbidding other people to run lotteries because they're immoral;
> they may claim that they're doing it because "this is *my* territory".

I think states do the same thing. Certainly in those states where the
staes run the liquor stores they must admit that they keep their
monopoly 1) for the money and 2) because they can.

I think the real differences are 1) the mafia gives a much better 
payoff and 2) the state advertises the hell out of the lottery
and sell their tickets everywhere.  Therefore, the state ropes
in a lot of suckers that probably aren't as inclined to
gamble, whereas the mafia pretty much only gets
fools who are dtermined to gamble. 

> Of course, both of them let the Catholic Church and Fire Departments
> run bingo games.  And at least back when I lived in New Jersey,
> we didn't get a state lottery until the Mafia agreed that
> it was ok to run it if the payoff was a lot worse than their Daily Number.
> (Mafia payoff was 60%; State was usually 50%.)
> 

I have a hard time believing the numbers are anywhere near this 
close. I think 40% is probably a more realistic number for state
lotteries that 50%, and as for the mafia, 60% seems incredibly low.

Nobody would go to a bookie that gave less than 90%  payoff,
and casino-style games tend to have like 97% payoff.
 
> On the other hand, Teri Gross on NPR was doing an interview with
> somebody who'd written a book about the current Philadelphia mob.
> Apparently, the concept of honor is long gone, even among the
> younger members of the old Italian families.  And not only no honor,
> but not really even any style as a substitute. Buncha crude thugs,
> got no respect for nobody.
> 
> 

Comes with assimilation I guess. 

George