In 1975, the University of Chicago economist Sam Peltzman observed that improving car safety caused more accidents because people took more risks when driving. With power steering, antilock brakes, widespread use of seat belts, and driver-assist alerts if we are too close to another vehicle or pedestrian, cars are safer than ever, but we also drive faster. Taking a bigger risk because technology imparts a feeling of safety is known as the Peltzman effect.
