Kevin Drum has a question:
Suppose that you lead a comfortable middle-class life. Let's say that you're in your 30s, married, two children, and you make $100,000 per year. I offer you a fair coin flip with the following possible outcomes:
- Heads: You will be stripped of most of your assets and will earn $30,000 per year for the rest of your life. That's all you get, and neither friends nor family can top it up for you.
- Tails: You will earn $1 million per year for the rest of your life.
Would you take me up on my offer to flip the coin?
Ninety percent of his readers wouldn't take the bet. He explains what he's getting at here.