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7 - Politics and Prohibitions; or, What's a Good Tax Anyway?

Published online by Cambridge University Press:  06 July 2010

Reuven Brenner
Affiliation:
McGill University, Montréal
Gabrielle A. Brenner
Affiliation:
Ecole des Hautes Commerciales, Montréal
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Summary

Which shows why prohibitions on gambling have been wrongheaded, often serving narrow political interests, their effect at all times in all countries having been the creation of extensive black markets rather than withdrawal from betting.

By the twentieth century, old theories blaming poverty on poor people's propensity to gamble and drink and on gambling violating the law of labor disappeared from both academic and political vocabularies. But it did not take long for new well-intentioned but inaccurate arguments against gambling to emerge. Some of these new vocabularies and models suggested what other jargons and models had suggested before: that gambling should either be prohibited or be a government monopoly both to prevent too much vice, fraud, corruption, and involvement of criminal elements and to control the populace's occasional irrational urges to gamble.

Other models have condemned government monopolies of lotteries or casinos, though without drawing the arguments to the logical conclusion or providing any alternatives. They condemned lotteries and some forms of gambling not on the grounds that monopoly rents could be spent on bribes or that monopoly prevents the development of a wide variety of innovative financial instruments and innovative betting markets. Instead, they stated that lotteries are both a regressive tax and a nontransparent one.

Type
Chapter
Information
A World of Chance
Betting on Religion, Games, Wall Street
, pp. 150 - 193
Publisher: Cambridge University Press
Print publication year: 2008

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