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I think you make some good points.

If someone took the cash out option and used it to build businesses which created real wealth, then that money could result in real economic growth. But otherwise, I see your point, that this money to pay the jackpot simply was re-distributed from everyone else who bought these tickets.

I’ve heard anecdotal stories of lottery winners who won millions and ended up broke later on. Anyone winning a huge prize, or inheriting substantial money, needs financial advice, big time.

And we’ve all heard similar anecdotes about professional athletes who have multi-million dollar contracts during their careers. But when their playing days are over, many of them lose all or most of what should have set them up for life, financially speaking.

Anyone who doesn’t have discipline when it comes to money will have problems if huge sums fall into their laps like this.

“...Anyone who doesn’t have discipline when it comes to money will have problems if huge sums fall into their laps like this.....”

I agree with you. All one has to do is go back and look at many of previous big-time winners over the past few years. Most of em are far worse off than before they won it. Managing that kind of money is a very difficult job. Sure, we may all want a crack at it, but it becomes a full-time headache. Basically, they find themselves in the role of a CEO of a multi-million dollar company with absolutely no experience to draw from. It takes discipline and experience to do it right and not lose it all to every con man,shark and taxing authority coming down the pike. Your privacy becomes totally shot, you’ll find yourself with friends and relatives you didn’t know even existed, your real, legitimate close relatives will end up hating you even though you gave them money (because it’s never enough no matter how much it is), your mailbox will be filled with hundreds, if not thousands of letters every day begging for “donations”. Fed-Ex and UPS will be there every day with overnight packages begging for the same thing, people will literally camp out on your lawn or an area close by so they can try to mooch off you every time you come outside or drive out the driveway. So you’ll have to move and find a gated place to live just to stay sane. You’ll also likely have to hire some type of armed security to keep you and your loved ones from being constantly harassed, or worse yet, kidnapped etc. And all of that is not counting the crap you’re going to have to deal with from the IRS and other taxing authorities. You’ll have to have accountants, tax attorneys, etc. to handle all of that. Don’t ask me how I know all this.... :) And no, it was NOT from lottery winnings on my part.
Money changes people drastically. Big money makes for big changes and it’s not always necessarily for the better. IF you’re not disciplined with it BEFORE you get it, you surely won’t be once you have it.