Chapter 4 The Economics of Celebrity, National Lottery and Charity.
©GeraldineBanks2024
Have there been any economic studies about how Celebrity Culture , National Lottery and the Charity Sector really benefit the UK’s Gross Domestic Product ? Or are these sectors regarded as ancillary events and not part of the economic establishment . I turned to Google for the answer.
Firstly Celebrity and the Power of Attraction.
Celebrity Power
The involvement of a famous figure in the advertising campaign of a Brand can rapidly change customer perceptions that boost brand loyalty and consequently , improve stock prices.
Improve stock prices! No mention of GDP, so it might increase revenue for a specific product, eg. if the Celebrity likes to wear Orange Trainers, then the sales of those Orange Trainers will increase.
But does the sale of those Orange Trainers improve the Economy for everyone or only a select section of the Public. The Trainers can be sold at a premium price, due to the Celebrity Association. This price may exclude lower income families ( psychological implications) and also the profits made from the manufacturing and sale of said Orange Trainers will go to Companies who are making use of low income labour and poor working conditions in the Countries where these products are made.
Let’s face it how many products that start being manufactured in the home Country end up moving abroad. Dyson Hoovers being a prime example. This was the cost reducing ethos for a long time, one which basically crushed the manufacturing industries in Countries that followed it. Hence the emphasis on Construction jobs to keep low skill level people employed.
There is a high likelihood that the Orange Trainers are imported and the Shareholders of said Company are Global. So, depending on tax rules within the Country , then the profits may never benefit the Country where the Orange Trainers are sold. The perception though is that Orange Trainers are wonderful and that lower income earners will do everything they can to “own” a pair.
Thus the growth of wearing of the Orange trainers will be exponential and low income workers will be willing to work overtime or unsocial hours to earn money for them , which leads to firms being able to keep their head count down ( a constant corporate objective ) while basking in the profits that their “essential” product has brought them. Meanwhile the costs of the trainers will impact the Retail Price Index and have the potential to cause inflation and so cause a correction in the Economy for example to increase interest rates and make everything more expensive.
Suddenly the Beckham’s faces become less attractive don’t you think? Celebrity Culture has sku’ed the economy creating a need for something that does not exist and actually causing price inflation, unemployment and unsocial working hours . All in the name of keeping a Brand alive.
The National Lottery
Next , the National Lottery , The Postcode Lottery and all the Charities that now have their own Lottery, soon I have no doubt, Local Councils will introduce one to help with their running costs.
It’s harmless isn’t it , a few pounds every week, and you could end up a being millionaire. Fat Chance. The betting odds are so far against you. Yet you can buy tickets online , you can create an account. You don’t need to go out of the house. Your numbers can be chosen randomly for you or if you feel it will reduce your odds of winning you can have the same numbers each week.
The advertisements for the National Lottery are on TV, radio and in supermarkets and post offices throughout the UK. They say why not? You might win? Don’t be so negative, someone’s got to win , why not you. I believe they even have a National Lottery show on a Saturday Evening for the numbers to be chosen. I’ve never watched it and quite frankly I can’t be bothered researching if it’s still on. It was only a vehicle for Celebrities looking for a gig on a Saturday night. Definitely a connection there with Celebrity and tempting the punter to buy into the desire to win.
I’ve bought a few lottery tickets in my time, but I’ve never deliberately bought a scratch card. I’ve been given scratch cards in Birthday Cards which is quite fun. I don’t get it though actually buying these dreadful printed cards, what is that stuff you scrape off , is it plastic paint, does it decompose in the environment? Are the inks safe and where do most people throw them when they find out they’ve lost. I’ve watched a woman carelessly put one in a dog bin and thought , well she doesn’t care about anything does she? It’ll either be incinerated or go to landfill. It’s consumerism gone mad. Give her a dedicated refurbished mobile phone that she can scratch away on a touch screen forever if she wishes.
I’m pretty certain lottery tickets aren’t recyclable either, the paper has a coated feel and the inks must be permanent and not water soluble. I wonder where they all end up?
Doubt if the Government and the various Charities involved in running them will ever get rid of their ” Cash Cow” Lotteries. It’s really up to the consumer to decide that they are a waste of time and energy and the return in momentary pleasure is just not worth it.
To an extent, some years ago that did happen, there was definitely a lot of cynicism about the National Lottery, people were just not winning anything and gave up. Which is why the National Lottery have had to invent new options to play. Lotto, Set for Life; Euro millions; Thunder ball ; Hot picks ; Euro million Hot picks and Instant Win.
A lot of human time, energy and creativity has gone into ensuring that hard earned cash is frittered away in the name of good causes such as the Covent Garden Opera House. A summary of the Beneficiaries are Health Education, Environment and Charitable Causes( 40% )Sport( 20%) Arts (20%) Heritage(20%). I wonder if the Houses of Parliament will be refurbished with Lottery Money?
The Government Contract is awarded every 10 years by the Gambling Commission with a fixed 10 year license, providing the licensee with a clear period for investment planning. ( Sounds like a Pension Fund? Read on……).
The current incumbent was appointed 1st February 2024 and is Allwyn Entertainment Ltd who is a subsidiary of Allwyn AG who bought out Camelot and are Europe’s leading Lottery operator The takeover of Camelot was financed by the Ontario Teachers Pension Fund. In essence a lottery ticket purchase in the UK is helping a retired Ontario Teacher which is I suppose a form of Charity allowing for Canada’s struggling economy.
In summary, the sales and marketing of Gambling in the UK is controlled and promoted by all Governments whatever party. It’s a cash cow and the population are bombarded by earning from risk. Yes it’s fun , but wouldn’t it be nice if the odds were a bit better. As for Celebrities, they’ll do anything for a quick buck, we need to start saying no to them, they are no better or worse than us.
thenotsomightyom 