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Freakonomics Radio

Is America Ready for a “No-Lose Lottery”? (Update)

Freakonomics Radio

Freakonomics Radio + Stitcher

Documentary, Society & Culture

4.632K Ratings

🗓️ 23 November 2017

⏱️ 45 minutes

🧾️ Download transcript

Summary

Most people don't enjoy the simple, boring act of putting money in a savings account. But we do love to play the lottery. So what if you combine the two, creating a new kind of savings account with a lottery payout?

Transcript

Click on a timestamp to play from that location

0:00.0

One of our favorite things to do on this show is present a new idea, or maybe a new way

0:11.7

to think about an old problem.

0:14.2

Way back in 2010, the first year we made for economics radio, we did such an episode,

0:20.0

unbeknownst to us, one of the people who heard it was so inspired by the idea that he would

0:25.2

spend much of the next seven years turning it into something real.

0:30.0

Knowing that this had been a podcast that turned into an idea that ended up becoming a constitutional

0:35.2

amendment and that I had a piece of that thing that had happened, it was just super exciting.

0:41.3

That's Michael Gaudini.

0:42.3

Yeah.

0:43.3

And I am a policy advisor with the City of Austin.

0:46.7

In 2010, he was a 21-year-old college senior in Pennsylvania, interning in a state legislative

0:52.8

office.

0:53.8

I was really trying to get involved more in public policy at the time.

0:58.2

I listened to the Freakonomics podcast on Prislink Savings and I thought it was a really

1:03.8

cool idea that was pretty common sense.

1:07.6

And what you may be wondering is Prislink Savings.

1:11.3

So a Prislink Savings account is basically just a savings account in which you're incentivized

1:16.5

to put more money into your savings account.

1:18.7

The incentive comes in the form of cash payouts.

1:22.2

Unlike a lottery, but unlike a lottery, and that even if you don't win, you still have

1:27.5

your principle.

1:28.6

We kind of wanted to harness the same type of feeling that you get when you play the

...

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