What is your life worth? According to the Environmental Protection Agency (EPA), researchers concluded that the ""value of a statistical life"" in America is $6.9 million, which is approximately $1 million less than 5 years ago. Five years ago the average American life was worth $7.8 million. How is this possible? Is this decline the result of the recession?
Will this statistic effect the average American in any way? It might. When policy makers evaluate regulations they take costs and benefits into account, just like the average person. ""The less a life is worth to the government, the less the need for regulation."" For example, a hypothetical regulation that costs $18 billion to enforce but will prevent 2,500 deaths is up for debate. At $7.8 million per person (the old figure), the lifesaving benefits outweigh the costs. But at $6.9 million per person, the rule costs more than the lives it saves, so it may not be adopted. (AP, www.foxnews.com, 7/11/08)
So how does the EPA calculate a person's worth? Is it by their impact on society? The number of people they help? The number of people who depend on them? No, economists analyze payroll statistics and opinion polls to determine how much risk a person is willing to take for a price. The verdict Americans are willing to take higher risks for a lower price. But the EPA encourages people not to think of this as a price tag on life. Is everything in America losing value? The American dollar isn't doing well in the International market and the stock market, the housing market, and now the American life, according to the EPA, are declining in value.
This hot topic is being debated by government agencies, officials, and businesses around the country. Do the costs of making changes to automobiles, inventing new medical technology, and protecting our environment outweigh the value of life? Why don't we consider life priceless?
Will this statistic effect the average American in any way? It might. When policy makers evaluate regulations they take costs and benefits into account, just like the average person. ""The less a life is worth to the government, the less the need for regulation."" For example, a hypothetical regulation that costs $18 billion to enforce but will prevent 2,500 deaths is up for debate. At $7.8 million per person (the old figure), the lifesaving benefits outweigh the costs. But at $6.9 million per person, the rule costs more than the lives it saves, so it may not be adopted. (AP, www.foxnews.com, 7/11/08)
So how does the EPA calculate a person's worth? Is it by their impact on society? The number of people they help? The number of people who depend on them? No, economists analyze payroll statistics and opinion polls to determine how much risk a person is willing to take for a price. The verdict Americans are willing to take higher risks for a lower price. But the EPA encourages people not to think of this as a price tag on life. Is everything in America losing value? The American dollar isn't doing well in the International market and the stock market, the housing market, and now the American life, according to the EPA, are declining in value.
This hot topic is being debated by government agencies, officials, and businesses around the country. Do the costs of making changes to automobiles, inventing new medical technology, and protecting our environment outweigh the value of life? Why don't we consider life priceless?
