No One Is Crazy

This podcast episode explores the phenomenon of lottery spending in America, with a focus on the disproportionate participation of the poorest Americans. Despite the extremely low odds of winning, Americans spent over $100 billion on state-run lotteries in 2023, with the poorest 1% of zip codes spending an average of $600 per year on lottery tickets, or nearly 5% of their income. The episode delves into the underlying reasons for this behavior, highlighting the concept of behavioral finance and intuitive reasoning that drives people's financial decisions. It emphasizes the need to understand and not judge these decisions, as well as the potential for irrational financial decisions across all socioeconomic groups.