Denton Criminal Defense Lawyers

Economics, Externalities, and Laws

Many people complain that laws put too many limits on them and do not allow them to do things that they should have the right to do. For example, some people argue that the law should not require them to wear seat belts. If they get injured, then they will suffer. Why should the government worry?

But there is a valid reason behind laws that people feel unnecessarily limit their freedoms. The study of economics helps understand why there are laws requiring seat belts, setting speed limits, and maintaining zoning requirements. The economic concept that helps explain most laws is the concept of “externalities.”

When people engage in a certain activity, others not engaged in the activity may receive benefits or may suffer costs. Externalities are the costs or benefits that accrue from activities to people not engaged in those activities. For example, if two people are sharing a room and one person talks on the phone continuously, then the other person may suffer the negative externality of not having enough access to the phone.

Similarly, negative externalities occur throughout society. If someone is driving a car without a seatbelt and gets into an accident, that individual will suffer more injuries than if he were wearing a seatbelt. As a result, the costs to society through taxes will be higher. Or, if someone is driving very fast and gets into accident with another car, people in the other car will suffer because of the first person’s actions.

Thus, as these examples reveal, the purpose of many laws is to limit negative externalities as much as possible. That is, many laws seek to minimize activities that negatively affect people not engaged in those activities.

Speak with a Denton Criminal Defense Attorney

If you have been charged with a crime, contact Denton criminal defense lawyers of Alexander & Associates by calling 1-972-420-6560 or through their website.