Cecil Bohanon and John Horowitz: The tradeoff between innovation and safety

The implosion of the submersible Titan that tragically killed five people near the wreck of the Titanic illustrates three realities about safety. First, there is a tradeoff between safety and innovation. One of the dead was Stockton Rush, the CEO of OceanGate, the owner of the submersible. In 2019, Mr. Rush said that regulations over the last 35 years had made the commercial sub industry extremely safe but at the cost of preventing innovation.

The tradeoff between innovation and safety reminds us of the aviator Wiley Post. Mr. Post was the first individual pilot to fly around the world. He developed and tested the first pressurized suit at the edge of the stratosphere. He probably was the first pilot to deliberately ride on the narrow bands of strong winds in the upper atmosphere, later called the jet stream.

He bought his first plane with the settlement money from an oil field accident that cost him the use of his left eye.

But Mr. Post’s willfulness that propelled his many accomplishments also caused him to be impatient, annoyed with details and avoid following rules. His willfulness may have cost him his life when, in 1935, Mr. Post and his friend, the columnist Will Rogers, died when Mr. Post’s plane crashed in Alaska.

Second, high-profile disasters focus attention on those dangers, and that focused attention makes people work to reduce those dangers. After the Titanic sank in 1912, researchers, officials and companies worked on improving watertight compartments, lifeboat requirements, locating icebergs, radio location and sonar development. One significant new regulation was the International Convention for the Safety of Life at Sea, which has been updated but is still in effect.

Third, when safety increases, people often act more recklessly, partially or entirely offsetting the safety improvement. Our colleague Todd Nesbitt found that improved car safety caused NASCAR drivers to drive more dangerously.

In Holland, several Dutch towns improved safety by removing road signs, traffic lights and sidewalks. Dutch traffic engineer Hans Monderman felt that having many traffic rules and directives reduces people’s feelings of personal responsibility.

Disasters sometimes happen because innovative people are overly optimistic and not great rule followers. However, disasters also lead to innovations and rules that improve safety. Unfortunately, improved safety means people pay less attention and act more recklessly, reducing safety. Feeling unsafe makes people operate more safely. Safety is full of tradeoffs.•

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Bohanon and Horowitz are professors of economics at Ball State University.