SC Lottery: Inferior Good?

Generally, retail sales of most goods decrease during economic downturns. On the other hand, inferior goods see an uptick, as consumers switch consumption from premium to lower cost goods. For example, McDonald's coffee benefit at the expense of Starbucks lattes. From The State, sales for the SC Lottery are up 3.7% despite higher gas and food prices.

Lottery spokeswoman Stephanie Hemminghaus tells The Herald of Rock Hill that a dollar seems more valuable these days. She said customers who spend $100 to fill their gas tank see an extra dollar as something they can spend on a lotto ticket.

"A $1 investment could win you millions," she said. "A dollar doesn't really buy you much in these hard economic times, but it will get you a Powerball ticket and the chance to win more money."

Victor Boulware, whose convenience store in Clover is one of the state's top sellers for lotto tickets, said his lottery revenue is up 20 to 30 percent over last year. He suspects that customers struggling with rising costs are getting desperate in their search for extra cash.

"People are takin' that chance, trying to get out of the hole in one shot," Boulware said. "The economy probably has a lot to do with it."