Why the US government values every single human life at exactly $10 million

Federal agencies must frequently calculate the monetary value of a human life to inform policy decisions, from pandemic reopening strategies to safety regulations for hazardous materials. This episode explores the origin of the $10 million figure used by the government to quantify human existence.

When government officials weigh the costs of safety mandates or public health interventions, they rely on a specific valuation to determine if an action is worth the expense. This $10 million figure serves as a standardized benchmark for agencies tasked with balancing economic impact against human safety.

The calculation is not merely philosophical but a practical tool for governance. By assigning a dollar amount to life, regulators attempt to create a consistent framework for deciding when the cost of a safety measure is justified by the number of lives it is expected to save.

Source: Your Life Is Worth $10 Million, According to the Government | Planet Money | NPR