Red Light Cameras Succeed/Fail...Not Generating Enough Revenue...Severance Tax Implications

In the span of two years the city of Dallas has demonstrated that the real purpose of red light traffic cameras is revenue, not safety. How is that?

Well, it turns out that they are very effective at deterring people from running red lights. The city placed them into service in early 2006. Now, two years late, they have announced that they are going to be switched off. Apparently, if nobody runs red lights, they can't generate the money projected. This is typical of government revenue projections. They rarely estimate in real world terms, understanding that the economy isn't static. Government actions affect behavior.

It's exactly like estimating revenue from the severance tax assuming that it won't have the natural effect that all taxes have. It assumes that the industry will continue to grow at its current clip. It's as if the government buys its own lies. Based on their flawed economic view, not only will the severance tax not cost consumers more, it also won't slow economic growth. Why do we trust people to run the government who have such a pitiful understanding of very basic economics?

Here's the link to the 2006 story and here's the story about suspension of the traffic light cameras. Both are from the Dallas Morning News.