Comments by "michael" (@michaeld4861) on "The Magic Economics of Gambling" video.

Interesting, I was just reading about this in the book "Thinking, Fast and Slow". It goes a long way to explaining higher crime rates in poverty too. The lower people feel, the more risk they are willing to take. You are more likely to take up bank robbing or selling drugs if you can barely feed your family. When faced with two scenarios, one with a small but certain loss and one with a tiny chance for huge loss but a large chance at no change, you are more likely to take the chance the more desperate you are. Hence why only poor people go without insurance. (even if it's cause they can't afford it)
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Right. My car insurance costs more in 3 months than my car is even worth.
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Not to mention that I've never heard of a savings account that even paid 1%. at least in my lifetime, it's always been around 0.1%
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