Tuesday, February 3, 2015

Plusses and minuses of US auto industry $750 billion "income" but $871 billion costs = net loss

Auto industry "study" does not examine the downside of its economic wave.

Wednesday, May 28, 2014

Economic costs alone are nearly $900 for each person living in the U.S.

WASHINGTON – The U.S. Department of Transportation's National Highway Traffic Safety Administration (NHTSA) today released a new study that underscores the high economic toll and societal impact of motor vehicle crashes in the United States. The price tag for crashes comes at a heavy burden for Americans at $871 billion in economic loss and societal harm. This includes $277 billion in economic costs – nearly $900 for each person living in the United States based on calendar year 2010 data — and $594 billion in harm from the loss of life and the pain and decreased quality of life due to injuries.
"No amount of money can replace the life of a loved one, or stem the suffering associated with motor vehicle crashes," said U.S. Secretary Anthony Foxx. "While the economic and societal costs of crashes are staggering, today's report clearly demonstrates that investments in safety are worth every penny used to reduce the frequency and severity of these tragic events."

The Auto Alliance, a group of automakers, perhaps in response to the NHTSA study results, is touting its positive economic impact with this "study," i.e. a nice PR piece. So lovely! But it does not add up any benefits larger than the losses caused by crashes. Perhaps we are comparing apples and oranges, and certainly this comparison excludes the huge economic benefits of vehicle ownership, and the huge economic costs of roads, pollution, and resources diverted to car infrastructure and away from public transport and public health, among many other things. But just these two figures, when taken alone, show that the auto industry brings a net loss to the US economy. And for every job gained there are lives lost, and that cannot ever really be compared.

 1 hour ago1 hour agoThe Automobile Industry = 7.25 million jobs in the United States: Embedded image permalink
Generating $500 billion in annual compensation.
Creating $205 billion in state and federal tax revenue each year.