Gene&Mary
New member
There are many ways of answering that question. This is just one way and may be right or wrong.
One way the government has determined whether the implementation of a regulation is worth it is to perform a cost/benefit analysis. Is it worth the cost of requiring auto manufactures to install seat belts worth the benefit received in lives being saved. Is it worth the benefit received to require hazardous material labeling. In order to do the calculation the value of a human life must be determined.
When this was done by the government in 1982, the value of a human life was first set a $300,000 which was the average earnings of a person over their lifetime. This value resulted in the cost of requiring hazardous material labeling exceeding the benefit. This was of course contested with one argument being if the value of a human life was only earnings, then Bill Gates' life was worth more than yours or mine. There was therefore more that entered into determining value than just earnings. Other factors were entered into the equation which resulted in a value of $3M for a human life. Using this $3M value, the hazardous waste labeling regulation was enacted.
Currently the value of a human life as determined by the US government is $10M. Regarding the Covid 19 pandemic, the US government has estimated that by enacting social distancing/economic shutdown procedures 1M lives will be saved. Doing the cost/benefit analysis- 1M x 10M= $10T. The entire US GDP for 1 year is ~$20T.
I guess from a purely economic standpoint, it's to be determined whether shutting down the economy will result in a loss of more than half a year's GDP.
One way the government has determined whether the implementation of a regulation is worth it is to perform a cost/benefit analysis. Is it worth the cost of requiring auto manufactures to install seat belts worth the benefit received in lives being saved. Is it worth the benefit received to require hazardous material labeling. In order to do the calculation the value of a human life must be determined.
When this was done by the government in 1982, the value of a human life was first set a $300,000 which was the average earnings of a person over their lifetime. This value resulted in the cost of requiring hazardous material labeling exceeding the benefit. This was of course contested with one argument being if the value of a human life was only earnings, then Bill Gates' life was worth more than yours or mine. There was therefore more that entered into determining value than just earnings. Other factors were entered into the equation which resulted in a value of $3M for a human life. Using this $3M value, the hazardous waste labeling regulation was enacted.
Currently the value of a human life as determined by the US government is $10M. Regarding the Covid 19 pandemic, the US government has estimated that by enacting social distancing/economic shutdown procedures 1M lives will be saved. Doing the cost/benefit analysis- 1M x 10M= $10T. The entire US GDP for 1 year is ~$20T.
I guess from a purely economic standpoint, it's to be determined whether shutting down the economy will result in a loss of more than half a year's GDP.