Are Rising US Lottery Sales an Economic Indicator?
Economists turn to lots of peculiar things when trying to make sense of the world. Alan Greenspan, the Oracular US Federal Reserve Chairman from 1987 to 2006, famously looked at dry cleaning and men’s underwear sales. Others skip closets and go straight for the wallet to assess the health of the American consumer.
Lottery ticket sales surged ahead of last week’s $1.3 billion Mega Millions jackpot — but whether that trend offers any true insights into the state of the economy is an ongoing debate for the people with elbow patches in ivory tower offices.
The $1.3 Billion Question
Last Friday’s Mega Millions was the second-largest drawing ever. The huge jackpot quickly led to $704 million in national lotto sales, something state leaders were quick to tout. In Arizona, sales for draws and scratch-off lottery games rose 152% year-over-year to $124 million in the July 1 to July 29 period. The Texas Lottery said its sales of $264 million…
