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It‘s not even about earning a profit. It should not be the goal of the government to collect (part of) its budget via fines, i.e. citizens breaking rules. Inste
by fbender 8y ago
It‘s not even about earning a profit. It should not be the goal of the government to collect (part of) its budget via fines, i.e. citizens breaking rules. Instead, it should always be the goal to have no need to fine.
And we can actually estimate how much the government actually saves if it does not need to fine (that much). Let‘s first look at the costs of the status quo:
- it costs X to check rules are followed (here: no cars park where they must not); this is mostly personnel costs\* but note that we may be talking about „manhours spent that could have been spent doing more sensitive/productive things“
- it costs Y to maintain the infrastructure to process and follow up on the fines (here: the $190 million IBM contract\* )
- it costs Z to collect the fines, process the payments (personnel costs), follow up on those that do not pay, court fees (process & personnel costs), jail costs (cause it‘s ’murica), and whatnot.
Now, if there are no\* fines to prosecute, here‘s a few ways the state can gain money:
- Citizens spend less time and money with unproductive work (here: paying fines), leaving more time for work (or relaxation which again increases productivity) and money to spend (raising economic output + sales tax).
- Officers, beuracrats, and judges can spend their time dealing with more important work.
- E.g. in the case of parking fines, businesses affected by cars parking in their way can instead do their business unhampered, i.e. be productive and this increases, again, economic output.
All of that increases tax returns (or reduces tax money spent for dealing with the fines).
\* Obviously, there‘s no way fines will drop to zero, because humans. But minimizing fines allows to minimize capital and infrastructure costs and increases economical output, thus there‘s a net gain that can offset the costs to reach that goal, if not immediately then within a few years.