Individuals more paternalistic than I think that soda, salt, cigarettes, and booze are dangerous enough to merit taxation and regulation. But the fact is an individual can use all of these things within the law and with moderation very safely, in which case the regulation and taxation is inefficient. The utilitarian question for paternalists then is what proportion of consumers use the product safely, and what proportion use it unsafely.

One product characteristic that I have not seen criticized on these grounds is top vehicle speed. My casual observance is that most new cars and trucks have top speeds well over 100 mph, with speedometers that go up to 120 or 140. Yet, for the vast vast majority of consumers, the vehicle cannot be driven at this speed legally, and doing so brings significant risk to other drivers. I am not sympathetic to paternalistic policies, so I don’t think limiting car speeds is good public policy. But I am puzzled that more paternalistic types do not argue for laws requiring manufacturers to sell vehicles with maximum top speeds set at 80 mph.

This map from wikipedia shows that in most areas in the country, you can’t drive at speeds over 75 mph, and nowhere can you take it over 80:

So why can you buy a product with a feature that cannot be used legally? Some consumers may take their cars to race tracks where you can legally exceed 80 mph, but this is probably a very small percent of drivers. And for this small minority you could make the top speed a default option that consumers can opt out by having a dealership remove the speed governor if they can prove they will use it at a race track.  And really, are any drivers taking their 109 mph minivans to race tracks?

The case for more strict speed regulations is much stronger than many paternalistic regulations because, unlike salt, sugar, and tobacco, it causes a clear externality. Research has shown that the risk of being in an accident increases exponentially when a driver is going faster than the average speed, and that accident severity increases with speed. In 2007, 13,040 traffic fatalities, which is 31% of the total, were classified as speeding related. Contrast this with the 10,000 gun homicides in the U.S. each year.

So my question for paternalists is, would you support a law that required to a low maximum top speed to be built into all cars? If not, why?