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Tuesday, January 13, 2009

More Tickets During Recession

It's not just businesses and household income that hurts during a recession, local government also feels the pinch. So it's no surprise that when economist Thomas A. Garrett conducted a study to find out if traffic tickets were purely dished out for public safety that he found the number of tickets cited go up significantly when local government revenue falls. In short, when there's a 1 percentage point drop in local government revenue there's roughly a .32 percentage point increase in the number of traffic tickets in the following year. What's interesting is that according to Garrett, the number of tickets does not go back down when good times return. Garrett says the increase makes sense as it's an appealing way to generate revenue, particularly during a time when raising taxes is not an option.

Furthermore, Garrett does say that the tickets being handed out are at their heart for public safety reasons, but doesn't believe many cities go out of their way to make a point to write more tickets. However, this article from the St. Louis Post-Dispatch references a 2004 investigative piece where top police officials in the town of Bel-Ridge, MO threatened officers if they didn't write more tickets.

Have you received a traffic ticket lately? Did you deserve it? Noticed more police patrolling the streets? Let us know.

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