Gambling: The Wrong Way to Close Fiscal Gaps

image by jasonswell

I have nothing against gambling; I love, love, love a good horse race and I've stayed up my share of nights at a craps table. I've played dice 'till sunrise, I buy Mega Millions tickets if the pot gets big and I've been known to wager a dinner tab with co-workers. However, gambling is not the way to cure fiscal woes. If states want to legalize gambling because the residents of the state in question want the liberty to choose whether they want to gamble or not, I am strongly for it, but not as a way to close fiscal gaps.
Gambling is a consumption activity. The only value that is being generated after everything nets out is whatever enjoyment gamblers got out of spending their money. There is no other net value being produced. Going back to Econ 101 (hi Greg!) we can't just all do each others' laundry. I have nothing against consumption, it is the reward we get for hard work, but you can't base an economy solely around it. As states turn to gambling to close budget gaps, it is increasingly important to remember how this all works: