Strange but true: an extra-big lottery prize means you've got an extra-big chance of going bankrupt.
That's the implication of a paper published in 2010 by researchers at Vanderbilt University, the University of Kentucky and the University of Pittsburgh. The authors looked at lottery winners as separated into two groups: those who won sizable cash prizes (between $50,000 and $150,000) and those who won more modest prizes of $10,000 or less. They found that five years after the fact, the big winners were the ones more likely to have filed for bankruptcy. BLOG POSTS  | Jared Bernstein: The Myth of the Myth of the Disappearing Middle Class
"The myth of the disappearing middle class" is a canard. Indeed, most living standards analysts think of the middle class as some chunk in the middle of the income distribution -- say the middle fifth or some variation therein -- which of course cannot by definition "disappear." I've been writing about middle class economics for decades and not once did I or my colleagues argue "disappearance." However, we did, and do, argue that the wage and income growth of middle class workers and families has weakened over time -- that the middle class has become increasingly squeezed. To understand the middle class squeeze, you've got to look at wages and hours. |  | Robert Reich: Whose Recovery?
The economy grew at a 3 percent annual rate last quarter. Personal income also jumped. Americans raked in over $13 trillion. Yet it's almost a certainty that all the gains went to the top 10 percent, and the lion's share to the top 1 percent. |  | Doug Molitor: Doug's Dozen: 12 Things I'll Do As Soon As I Win That $640 Million in the Lotto
If I won Mega Millions, I'd buy a $40 million house... with a $600 million wall to keep all you envious poor people out. |  | Annie Leonard: The iPhone and Consumer Guilt
Next time someone says they feel guilty for owning an iPhone, ask if they were the one who decided to maintain a 73% profit margin while underpaying workers on 18-hour-shifts. To roll out new models at breakneck speed? To use conflict minerals and toxic chemicals? |  | David Geller: Mega Millions Winner: Here's My Advice
Dear Future Lottery Winner: Congratulations on winning $640 million! You must be feeling great right about now, and my hunch is that you also are feeling a bit overwhelmed and anxious about what to do next. | | MOST POPULAR ON HUFFINGTONPOST.COM |
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