…policy analyst John D. Graham and his colleagues at the Harvard Center for Risk Analysis found in 1997 that the median cost for lifesaving expenditures and regulations by the U.S. government in the health care, residential, transportation, and occupational areas ranges from about $1 million to $3 million spent per life saved in today’s dollars. The only marked exception to this pattern occurs in the area of environmental health protection (such as the Superfund program) which costs about $200 million per life saved.
Graham and his colleagues call the latter kind of inefficiency “statistical murder,” since thousands of additional lives could be saved each year if the money were used more cost-effectively. To avoid such deadly waste, the Department of Transportation has a policy of rejecting any proposed safety expenditure that costs more than $3 million per life saved. That ceiling therefore may be taken as a high-end estimate for the value of an American’s life as defined by the U.S. government.
This reminds me of my old article on Value of Life – where the hidden cost of the Iraq war for the US comes to 720,000 lives lost (based on the huge cost).