The central finding is this: people who win large amounts are just as likely to end up bankrupt as people who win small amounts. People who win a large amount, $50,000 to $150,000, have a lower bankruptcy rate immediately after winning but a higher bankruptcy rate a few years later so the 5-year bankruptcy rate for the big winners is no lower than for the small winners.
Amazingly, by the time the big winners do go bankrupt their assets and debts are not significantly different from those of the small winners. The big winners who ended up bankrupt could have paid off all of their debts but chose not to.
Here’s the link.
Yikes. Read a conservative-type person this and prime them into ‘far’ mode by linking this to income transfers, entitlement spending and welfare receipts. I dare you.
What’s the sympathetic view? Professional athletes that are too trusting and get taken advantage of? Mike Tyson?
A bit harder to pull off.
Not Unreasonable 