Study Links Reduction in Alcohol-Related Car Crashes and US Economic Growth

A recent study has shown an interesting correlation between the drop in US alcohol-related car accidents and the overall growth of the US economy. According to the study, as the number of alcohol-related accidents has dropped, the US economy has experienced a corresponding boost to overall GDP.

A recent study has shown an interesting correlation between the drop in US alcohol-related car accidents and the overall growth of the US economy. According to the study, as the number of alcohol-related accidents has dropped, the US economy has experienced a corresponding boost to overall GDP.

The study, published in the journal Injury Prevention (and summarized by the Duluth News Tribune) compared alcohol-related accident rates during the period of 1984-1986 with those that occurred since, and then compared the respective economic performance for those periods, as well. According to the study, economic gains occurred whenever alcohol-related car crashes declined. According to the authors of the study, this trend will continue as new technologies, such as breath-controlled ignitions, become more common and alcohol-related crashes continue to shrink in the US.

The study authors wanted to investigate whether car accidents were actually good or bad for the economy. Some of the study authors theorized an opposite result to those yielded by the data. They had hypothesized that money spent domestically after a car accident (such as for medical expenses) would be more beneficial to the overall GDP than having that same money spent on consumer goods (many of which are manufactured overseas). To the researchers’ surprise, the opposite appeared to be true.

According to the study, healthcare was the only sector of the US economy benefited by more car accidents. Overall, alcohol-related automobile accidents reduced the American GDP by $10 billion and cost 234,000 jobs. The researchers reported that economic growth during times of reduced alcohol-related crashes was partially due to people not missing work and simultaneously being able to spend money on other products and services than medical costs. As a result, employers receive more output; avoid having to pay benefits for disability and paid time off, and the salaries of replacement workers.

The rise of autonomous vehicles and enhanced safety features should continue to reduce the number of accidents that occur each year because of alcohol consumption. Should the results of this study catch on in the mainstream media, it could lead to an increase in the use of devices designed to disable vehicles unless a driver can establish sobriety, particularly as sentencing measures following DUI convictions. Thus, technologies supporting self-driving vehicles and enhanced prevention of drunk driving could be growth industries over the next few years, while the effects they have on the American population may continue to boost GDP.