Enforce Speeding Laws to Speed the Economy Given indications in Nigeria to install speed controls in automobiles and because we are looking for ways to speed the economy, we thought we should share this discussion again. Now, some people simply just enjoy speeding, never seeming to mind the consequences. They can't stop speeding. It is often not because they need to arrive anywhere in time, it is primarily because they just want to have fun. Indeed they are often surprised when an officer stops them on the road. Practically all countries, especially developing countries need to enforce their laws against speeding. Most legal rules will determine who pays what penalty to whom if the rule is broken. Thus, one might describe a law against speeding as a rule providing that anyone caught driving over the speed limit will pay a given amount of money to the authorities. Viewed this way, a speeding law is simply a way of raising revenue, making a speeding ticket a rather peculiar kind of tax bill. But wait a minute, wouldn't one think that the traffic ticket is a way of discouraging speeding that can lead to injury or even death? It is. So what if people altogether stop speeding, where will the speeding tax revenue come from. Well, there are always some people who will speed. This people then will be corrected. They will pay a fine. But that is not why we have most speeding laws. Their purpose is not to tax speeding, but to prevent it. We pass such laws because we believe that a driver is less likely to drive fast if one probable consequence of doing so is a fine. But some drivers seem to never mind this. In the United States, when they started with knits, the highway speed limits were determined by the 85th percentile speed of the drivers who used the highway. So traffic speed limits would be set based on the highest speed 85% of the drivers used. However, President Nixon later imposed a Federally Mandated National Speed Limit of 55 MPH and was supposed to save lives. It was also supposed to save fuel and oil reserves and it did. By the US government's own numbers, worldwide oil reserves would last 10 weeks longer if such speed limits were maintained. It also generated revenues for the government, because many more drivers could not control their speed. So well enforced speed limits can save fuel, save lives and raise money for the government to take care of the people. Our hidden economics for you.
Posted: Oct 11th, 2016 @ 04:02:13 AM