Why The US Government Thinks Your Life Is Worth $10,041,645
Photo 196914105 © Marek Uliasz | Dreamstime.com
If there comes a time when you feel insignificant, just remember that the US government thinks you’re worth much more—US$10,041,645, to be exact.
Of course, the value of a human life can’t be quantified, but as YouTube channel Half as Interesting notes in a new video, decision-makers need a number to measure how much rescuing a person isn’t worth it in the grand scheme of things.
Back in the 1970s, researchers sought to figure out how much Medicare would cover on average to keep a person healthy and alive for a full year, or per Quality-Adjusted Life Year (QALY). It was determined then that one QALY was worth about US$50,000. Now, the figure is around US$129,000.
The video also details that, in 1979, former US Air Force pilot Jack Carlson developed a similar model based on military measures. After considering all the procedures required to keep malfunctioning aircraft in the air before a pilot could save their own life, he gathered that the Air Force valued a human life at US$270,000.
The concept would finally evolve into a model called the Value of a Statistical Life (VSL). This time around, the Occupational Safety and Health Administration (OSHA) and economist Kip Viscusi looked into risk versus wage in the job market. It was deduced then that jobs with a 0.01% greater risk of death would be paid with a salary of US$300 more, on average. Applying this formula to the entire workforce, OSHA arrived at a number of US$3 million.
When adjusted to today’s currency, that’s about US$10,041,645. The model is still in use by federal bodies today.
[via Digg and Half as Interesting, cover photo 196914105 © Marek Uliasz | Dreamstime.com]
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