The Impact of Autonomous Cars on the US Economy

There has been continuous buzz about self-driving cars over the past few years, with successful tests and disastrous accidents alike, being reported in the news. There is no doubt that such a ground-breaking invention will change transportation norms throughout the United States, just as Henry Ford’s automobiles forever changed the way to get around the country.

In fact, Wired reports autonomous vehicles are expected to add $7 trillion to the U.S. economy over the next 35 years, based on data from Intel and research company Strategy Analytics. This is no small number, considering just robotic cars alone could add $2 trillion to the nation's economy by 2050, not even taking into account the current jobs and businesses that will be affected financially. To put these numbers into perspective, $1 trillion could buy about 40 million new cars, according to Kiplinger. But what makes up this enormous number?

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Self-Driving Cars and Jobs

Autonomous cars are predicted to positively influence the economy in the coming years, but their impact will be spread unevenly across sectors. Companies like Google and GM who have invested in making this technology a reality, will see the most money. Then, for the average Joe, the industries that will likely see a rise in job demands include data analysis, IT, and mechanics. Just like our smart phones and credit cards, autonomous cars collect data on a driver's habits, which in turn creates jobs for humans who need to sort and analyze this data. Intel reports jobs in information technology (IT), though they will see a shift from actual discovery of information to the management of machines finding information, will almost double in intensity. Additionally, the number of miles driven is expected to rise, increasing the need for cars, self-driving or otherwise, to be repaired by mechanics. 

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On the other hand, there will also be a decline in jobs, especially for people working in the service industries. Jobs like food delivery and taxi services may no longer be needed with the use of self-driving cars. This brings into effect the concept that Intel and Strategy Analytics call "The Passenger Economy," an idea which places economic and societal value on pilotless vehicles. Essentially, why hire humans to do a job that cars can do on their own? While they profit either way, this is a question that companies like Uber will have to face when replacing human drivers with company vehicles. 

It should also be noted that self-driving cars may create jobs that are still unknown. After all, with new technologies come new jobs the market previously did not anticipate. On the flip side, new technologies could also make jobs that currently exist obsolete. No matter which sectors see an increase or decline in job security, the fact remains that the American economy will still receive an estimated $7 trillion economic boost (or even even bigger-no one can put an exact number on the future!) Just like the Model-T helped restructure city spaces and bring the suburbs into existence, autonomous vehicles have the ability to transform job markets. There are endless possibilities for economic reform.

Autonomous Car Regulations

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Though all the glory of creating thousands of new jobs and boosting the economy sounds appealing, it does not happen without the technology meeting all safety standards first. Which is why, the National Highway Traffic Safety Administration (NHTSA) is not counting their chickens before their eggs hatch. The NHTSA has released the Vehicle Performance Guidance for Automated Vehicles, a document which, "outlines best practices for the safe design, development and testing of automated vehicles prior to commercial sale or operation on public roads." Included in this document is a 15-point safety assessment that requires manufacturers to meet objectives such as operational design, post-crash response, privacy, and cybersecurity before their cars can go to market. Considering that 94% of automobile crashes are due to human error, there is definitely room for technology to advance driver safety. Hopefully, if all autonomous vehicle manufacturers can meet the standards set by the NHTSA, this will be a step in the right direction to saving lives. 

The Future of Self-Driving Cars

What does all this mean for people who are willing to give up their spot behind the wheel and let the car drive itself? (That is a scary thought for a lot of people!) Well, most people want more proof that these cars won't crash and will safely deliver them to their destination before they surrender the wheel. That is why companies who create autonomous car technology need to be regulated to ensure absolute safety in their products and so that consumers are not just paying for the newest trend in transportation. Put simply, this technology needs to save lives and be safer than the transportation methods we already have. Gill Pratt, CEO of the Toyota Research Institute said to Consumer Reports that “there’s no way that we as a society would accept self-driving cars that cause the same number of fatalities as humans.” 

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In 2015, there were roughly 35,000 traffic deaths in the United States. Future autonomous vehicles must allow for more safety if they are to replace human drivers. People also need to remember that transportation technology takes years of planning before it can be used in everyday lives, and that for now, only people can drive cars. Testing allows room for development and improvement, but overall “we expect machines to be better than us,” as Pratt said.

Until it's proven that autonomous vehicles are safer than human-operated vehicles, humans need to be careful when driving on the road today. While we may one day be able to sleep while a car drives us around, we have to make sure that for now, we don't fall asleep behind the wheel! Sleepy driving, distracted driving, and drunk driving are bad human habits that can lead to serious injuries and death in the event of a car crash. By following the rules of the road and maintaining good driving habits, people can protect themselves from being involved in fatal car accidents. 

At the end of the day, it is impossible to plan the future or to predict how large of an impact autonomous vehicles will have on the economy or auto law. What we do know is that self-driving cars will add jobs, take away jobs, and, based on how well they are regulated, even save lives. 


Self-driving cars are growing closer to reality than we think due to the rapid development of technology. However, today, we still rely on people to drive vehicles, and as such, following the rules of the road is the best way to stay safe and to avoid motor vehicle accidents. If you or someone you know has been in involved in an auto accident, please contact The Michigan Law Firm, PLLC at 844.4MI.FIRM for a free consultation.

Proposed State Bills Allow for Public Sale of Self-Driving Cars

It appears that the State of Michigan is ready to dive into the world of self-driving vehicles. The U.S. auto capital is making preparations for the arrival of autonomous cars by passing legislation to allow for public sales and operation. Currently there are existing state laws that only allows testing on these types of cars. 

Michigan State Bills for Public Sale of Self-Drive Cars

A package of bipartisan bills which would update 2013 laws to allow for sales and operation are in the works, the Detroit Free Press reports. Furthermore, Detroit based auto companies General Motors, Fiat Chrysler, and Ford would be authorized to run networks of on-demand self-driving vehicles. This piece of legislation is an effort from both the government and auto companies to reinvent themselves as “mobility companies”. Earlier this year, GM invested $500 million in Lyft and bought a start-up company that creates software for autonomous vehicles. 

“It’s coming. It’s coming fast. The technology is at a point where it will be incorporated into something that is mass-produced,” Michigan Department of Transportation (MDOT) Director Kirk Steudle said. Michigan is not alone in having laws on the books related to self-driving vehicles. Nevada became the first state to authorize self-driving vehicles in 2011, and California, Florida, North Dakota, Tennessee and Utah followed suit. 

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Testing of self-driving vehicles is getting closer to home as well. In July, a convoy of self-driving Army trucks were tested along a stretch of Interstate 69 in Michigan’s “Thumb” region. To follow Michigan state law, someone will be required to be at the wheel at all times as a precaution. MDOT has been working closely with state legislators to develop the bills, which the state’s economic development officials are supportive of. “I see the autonomous vehicles being tested on the road every day. It’s weird, but it’s what’s going to move the auto industry into the (next century),” Senator Mike Kowall, the lead sponsor of the proposed bill said. Governor Rick Snyder is also “very supportive” of the proposal, according to a spokesman. 

Not everyone is 100% on board with the proposal which will begin to be considered for adoption later this summer. Consumer Watchdog President Jamie Court is concerned that the auto companies are moving too fast and the necessary safety measures aren’t being put in place. “It’s foolhardy to rush into this without a plan just because it seems to be a way to stimulate jobs,” Court argued. Court also believes that there is a long way to go because “robots and humans don’t communicate.”

One of the Michigan bills that is being debated would end the requirement for a driver to be behind the wheel at all times, and another would provide funding to build a facility which would allow for testing of autonomous and wirelessly connected cars. The proposed facility would be located at the site of an abandoned GM plant that once produced World War II bombers. 


Traffic deaths in Michigan have seen an increase in the last year, as lower gas prices and a rebounding economy has led to more cars being on the road. Whether it is a trip to the super market or a road trip up north, drivers should always be focused on what's happening on the road. If you or somebody you know has been in a car accident, call The Michigan Law Firm, PLLC. Car collisions may lead to physical, mental, and emotional damage. Our attorneys will work alongside you to get you the help you need. Call us today, at 844.4MI.FIRM for a free consultation.