If you haven’t yet realized the painful truth that government is quick to promise but loathe to perform, then you haven’t been paying attention. We can cite multitudes of instances where government programs or initiatives have been implemented to address a real or imaginary need and has exacerbated the problem. As a rule compared to the private sector or motivated individuals, government is inefficient, ineffective and incompetent. One would think that given the economy of scale, the sheer size of government would result in some form of cost effective management. Although our federal government and its many satellites and acolytes through the land are huge, they are in essence hundreds of thousands of little fiefdoms that are jealous of their positions, their power and their portions of the public purse. You intuitively know that the ponderous purveyors of government power are full of it. It might be illustrative to examine just one tiny aspect of government involvement in the economic marketplace as well as the marketplace of ideas. Let’s look at the lottery, shall we?
Here in Ohio the lottery was approved 2-1 by eager voters because its promoters promised a bonanza of funding for public schools. The passion of Parma Senator Ron Mottl led to State Issue 1’s passage in 1973, and the first game appeared in 1974….37 years ago. The schools continue to cry for more money. The promised panacea has not produced like the petty politicians proclaimed it would. So, promise number one in the government’s role in the lottery has resulted in a tattered remnant of the predicted potential. The score is lying politicians 1, the people zero.
Gambling is not something that interests me. Although I contribute my $10.00 fee to the annual March Madness pool, I spend most of my time reading when we go to Las Vegas. It has seemed somewhat discordant to me that the state would be the initiator of a gambling enterprise while, at the same time, regulating or forbidding other games of chance. Admittedly, Issue 1 did alter the state constitution to allow for the state-run lottery so it’s constitutional and legal. If I were king, my constitutional pronouncements would not allow the state to engage in any activity that might place private sector entities at a disadvantage.
You have undoubtedly seen Lottery ads on television, cable and in the print media. You’ve also heard them on radio if you are a regular listener. Lottery commercials are pervasive with their promotion of the daily drawings and the twice-weekly major jackpots. Because Ohio has three large drawing games, the advertising seems nonstop. Powerball, Mega Millions and Classic Lotto pitches dominate the Buckeye airways. At times I believe the state should be indicted for false advertising. After someone wins a large drawing, the state celebrates the “newest millionaire.” Let’s do the math. If you, like any sane individual who doesn’t trust the government with your money, select the “lump sum” payout, your net proceeds after taxes and the single-payment penalty will be around 34% of the touted jackpot. So, a “million-dollar” winner receives a cool $340,000.00 plus change. That amount is better than a stick in the eye, but it will not buy a double-wide on Easy Street.
As sensible politicians (there are a couple) attempt to minimize or eliminate the estate tax in Ohio, some statists have suggested higher rates or total confiscation of estates because “the heirs didn’t earn the money and aren’t entitled to it.” If the statists regain control (that is possible if the GOP loses its courage and purpose), will they implement highly punitive taxes on “unearned wealth?” If they do, it could be as high as 75% because 100% might seem too harsh….for now. In the perfect statist world (remember $250,000 is “rich”) the MILLION DOLLAR WINNER would net the princely sum of $85,000.00.
If lightning strikes and I win the March Madness pool, my winnings will be as advertised by the pool manager. Yes, I’ll have to pay taxes on my winnings (;-), but they can be integrated into my whole tax structure….not withheld by a greedy government. There is no lump sum penalty for the basketball pool. What I expect is what I get. In the real world the government promises a million dollars and cuts a check for $340,000. In the government’s dream world they promise a million dollars and hand the winner $85, 000 in coinage. Your beneficent government proclaims to the world, your friends and neighbors that YOU were a MILLION DOLLAR WINNER so that every relative you’ve never met and every life insurance salesman in a four-state area can make the remainder of your life a totally miserable experience.
Your government makes promises. Your government writes checks for payouts. Your government lies. One final note: prior to the advent of Powerball and Mega Millions in Ohio, more people were struck by lightning on an annual basis in Ohio than those who won the “Super Lotto.” Your odds of getting sound representation from career politicians are comparable.
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