The Lottery is a short story by Shirley Jackson that describes a small town’s “lottery.” Paper slips are placed in a roughed-up black box around which people socialize. Then, one member of the village is chosen at random and stoned to death by members of the community.

The story reflects a time of widening economic inequality, with popular materialism asserting that anyone can become rich if they try hard enough. It also reflects the state’s need to raise money and its belief that lotteries would provide an efficient alternative to increasing taxes.

Initially, states embraced lotteries as a way to fund education, veterans’ health programs, and other services without especially burdensome tax increases. This arrangement was largely successful for the immediate post-World War II period, but as inflation accelerated and costs rose, politicians began to believe that it was no longer possible to sustain public spending.

By the 1980s, state lotteries had grown enormously, with players overwhelmingly coming from middle- and upper-income neighborhoods. Low-income people did play, but at much lower levels relative to their share of the population.

When someone wins the lottery, they receive a lump sum payout or a series of payments (commonly called an annuity). If they choose to invest the winnings, they can potentially grow the amount to close to the advertised prize and take advantage of compound interest. However, this option requires careful planning and financial discipline, as well as an understanding of tax laws and rules.