10/19/2003

10-19-03 - 2

10-19-03

Politicians who do economic analysis are such dumb shits. They say Indian Casinos are good for an area, because those Casinos spend millions on roads, hire local workers, buy local services, etc. Hmm.. if a Casino spends $1 million locally, it probably took in $10 million in profit. That money is coming almost entirely from lower/middle class people who live locally. What if the casino wasn't there? The people would spend their money locally. So, with no Casino, you get $10 million of local spending. So, essentially by having a Casino, you're losing $9 million. Where's that money going? To the executives of the management company running the casino, to the bankers and investors that bank-roled it, etc.

Money should be looked at like a fluid. It flows, it doesn't come out of no where, and it doesn't just disappear. It comes from people and goes to people. What you want is money to flow from outside systems to local systems. Just generating a lot of activity and exchange of money is not inherently good. If I go to my neighbor and we trade money over and over, we're not improving the economy or anyone's lives at all. When you do something like bring a Casino to town, all you're doing is creating a spigot, an outlet for the money fluid to flow to these mega-rich who operate the Casino. It's important to note here that I'm talking about Indian Casinos which draw primarily from local people, not Resort Casinos like Las Vegas which are tourist attractions and cause money to flow into the state.

Money flow and systems acts as a sort of "screw your neighbor". When you open an Indian Casino, you do create a little local flow from the neighboring community into the immediate area around the Casino. If you look at the system within a 100 mile radius, there's a net loss, as I detailed above, but the small area around the Casino gets a net bonus. Because much of politics is very selfish and small-time, we get these "net loss / local win" propositions all the time.

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