How changing Daylight Saving Time upends the economy

While most of the analysis related to America’s bi-annual clock changes covers the health impact of DST, which includes a higher risk of heart disease due to disrupted sleep schedules, the economic toll has not received as much attention. .

But studies show that changing watches twice a year has an adverse effect on the money side of things, which is quite real, and the evidence is mounting.

A study published last year by scientists from several business schools found that investors and capital market participants are slower to respond to accounting reports during the week after we “jump forward” in the middle of reporting season.

“These results are strongest among firms with investors who are more likely to trade on P&L news and among firms with a less developed investor base,” the authors write. “Further analysis shows that our main results are driven by a muted response to unexpected positive results, consistent with cognitive impairment and investor pessimism, which together underlie the market’s weakened reaction to earnings news.”

FOUR-DAY WORK WEEK GETTING STEAM, RESTAURANT AND INDUSTRIAL INDUSTRY SAY IT DOESN’T WORK

Another group of business school researchers found that on the Monday after daylight saving time increase in occupational injuries. Not only that, injuries were more severe (measured by days of work lost due to injury), which rose by 67%.

A follow-up study found that there is a sharp spike in “cyber idleness” on the Monday following DST, with employees browsing the internet for non-work related activities.

There is also evidence that the change in time leads to an increase in the frequency of heart attacks, strokes and depression, which leads to an increase in healthcare costs. Even commuting is getting more treacherous and expensive, given that daylight saving time has been linked to a spike in car accidents.

YOU CAN’T ELIMINATE THEM, THEY GO

And while daylight saving time was touted as an energy-saving move, a 2008 study by the National Bureau of Economic Research found that DST actually led to a 1% increase in consumer residential energy use in Indiana, at a cost to households in the state. at an additional $9. million into their energy bills, resulting in an additional $1.7 million to $5.5 million in “social costs associated with increased pollutant emissions.”

The actual dollar amount of the collective impact of these factors is difficult to determine, but a Chmura Economics & Analytics study a decade ago found that the spring change cost the US economy more than $433 million. As of 2021, Manhattan Institute Senior Fellow Allison Schrager reported that DST has cost the aviation industry alone hundreds of millions of dollars.

REPUBLICAN HOUSES OFFERS A BIG PACKAGE OF ENERGY AND PERMISSION REFORTS

As evidence grows that DST is negatively impacting the health and economy of Americans, there is growing pressure in Congress to phase out the time change entirely.

Florida Senator Marco Rubio led a bipartisan coalition to make what is currently called DST the new standard time. His “Sunshine Protection Act”, eliminating the change of time, passed the upper house. by unanimous consent last year. The House of Representatives never considered the issue, but lawmakers are making another attempt.

Rubio reintroduced his legislation last week with the support of several senators from both sides of the political aisle, and Rep. Vern Buchanan, D-Fla., filed a companion bill in the House of Representatives.

CLICK HERE CLICK FOX BUSINESS ON THE ROAD

“This ritual of changing time twice a year is stupid,” Rubio said. “Locking the clock has overwhelming bipartisan and popular support. I hope that at this Congress we will finally be able to do it.”

Editor’s note. The article originally stated that Senator Rubio opposed daylight savings time. We’ve updated the story to reflect the Senator’s legislation that would make DST the default time all year round.