Demand, Supply Rap

Learn some principles of economics in rap form. The only one I contend with is number 7. I understand this is intended to simplify things but a public choice/government failure line would have complete the song for me. Enjoy!

Lead-Footed Drivers Can Save the Economy

I had an eye appointment Friday in Augusta and, of course, I was running late.  I had spent too much time having lunch with some friends and was most likely going to have to reschedule the visit for some time in the distant future; however, always up for a challenge, I jumped in my car and started driving at my normal speed, 10 over, in hopes of making it there on time.  As I turned onto the Fall Line Freeway I noticed the speed limit had been increased from 55 mph to 65 mph.  I smiled, sped up, and made it to the doctor's office with 5 minutes to spare.

This got me thinking of the economics behind the raised speed limit.  I was able to enjoy added utility by eating lunch with friends, gained utility from arriving at my appointment on time, the doctor and I engaged in a mutually beneficial transaction, I didn't have to reschedule and make the journey again (which would create a whole mess of implicit and explicit costs), and I gained some extra utility just from the fact that I enjoy driving fast.  And all these benefits came with almost no negative effects on anyone, as I passed very few other cars on my trip down the Freeway (while smiling, a positive externality I chose not to charge them for).

I haven't done any research on other people's preferences, but I believe I'm not the only person who would appreciate a higher speed limit on the states highways in areas where it would be safe (not near schools and residential areas, like the portion of the Fall Line Freeway I traveled.)  Higher speed limits would decrease the transaction costs of trade, as less time would be spent traveling.  Due to lower transaction costs, people would be more willing to engage in trade, therefore boosting the economy, something that would help the US get out of our current recession.  Again, this is assuming the benefits from driving faster outweigh any marginal costs.  Lots of research would need to be done before the state raises speed limits across the board.  But as a lead-footed college student who hates speeding tickets, I'm all for it.