> I have a theory that the prevalence of gambling, trading, and investing is a natural response to wealth inequality and automation. Wealth has always correlated with risk (e.g. business ownership) but as the prospects for wealth diminish, the amount of risk people are willing (forced?) to take on grows.

There was a NY Times article a while back that talked about why Gen Z is so into gambling: they feel the system is so rigged against them that traditional strategies to get safety and security (e.g. get a good job, save, buy a house, etc.) don't work anymore. So they either give up (and focus on short-term consumption) or throw their money at long shots like gambling and crypto, hoping for a jackpot.

> The pessimistic view is that these marketplaces are just another cause of wealth inequality, they will always extract more wealth than they generate, and there is no place for them in a balanced, healthy economy.

That is the truth. They don't generate any wealth, they exist to take a cut on people transferring money unproductively.