For what it’s worth, I’m fairly confident self-driving cars will cause a bigger splash than $500 billion. Car accidents in the US alone cost $836 billion. In a world with ubiquitous self-driving cars, not only could this cost be slashed by 80% or more, but reduced parking spots will also allow much more economic activity. Parking spots currently comprise about a third of city land in the US. The total impact could easily be over a trillion for the US alone.
Still not enough to get even close to 20% growth though.
Saving money through having less car accidents doesn’t produce GDP. It might even reduce GDP because people don’t have to buy a new car to replace the crashed car.
Wouldn’t the capital saved on fewer car accidents be free to boost consumption and production? Moreover, most of the $800 billion figure does not entail savings from car repairs/replacements but working hours lost to injuries, traffic jams, medical bills, and QALY lost.
For what it’s worth, I’m fairly confident self-driving cars will cause a bigger splash than $500 billion. Car accidents in the US alone cost $836 billion. In a world with ubiquitous self-driving cars, not only could this cost be slashed by 80% or more, but reduced parking spots will also allow much more economic activity. Parking spots currently comprise about a third of city land in the US. The total impact could easily be over a trillion for the US alone.
Still not enough to get even close to 20% growth though.
Saving money through having less car accidents doesn’t produce GDP. It might even reduce GDP because people don’t have to buy a new car to replace the crashed car.
Wouldn’t the capital saved on fewer car accidents be free to boost consumption and production? Moreover, most of the $800 billion figure does not entail savings from car repairs/replacements but working hours lost to injuries, traffic jams, medical bills, and QALY lost.