What happens when a math illiterate, irresponsible person wins a huge lottery jackpot?

At age 27, the unmarried woman in this news story already has 4 kids.

But good news! She just won the lottery! And after taxes, she took home a lump sum of $88 million!

But bad news! She seems to be on a path to wasting all of it on bailing out her serial criminal boyfriend!

Every time she bails him out, the bail is double the previous amount. The most recent time, bail was $12 million. And even though he always shows up for his court appearances, between 7% and 10% of the bail is non-refundable. So for the most recent time, she lost between $840,000 and $1.2 million.

Since she won the lottery less than a year ago, she has already bailed him out three times. If she continues to do this at the same rate, and if the bail amount keeps doubling every time, and if between 7% and 10% is non-refundable, then in less than three years, she will have spent all her money on the non-refundable part of bailing out her boyfriend.

The idea of the bail amount being doubled each time is a fantastic idea. It gives smart people a chance to quit their life of crime before it’s too late. And it shows that stupid people are, well, stupid.

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January 7, 2016. Tags: , , , , , , , , , , , , , , . Economics, Math.

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