Lawmakers on both sides of the aisle are behind a bill that would affect every resident of the United States: A permanent switch to daylight saving time Beginning in November 2023. Aside from avoiding the nuisance — and sleep deprivation — of changing the clocks twice a year, the effort could give the economy a boost, lawmakers say.
The Sunshine Protection Act was intended to boost consumer spending and shift energy consumption by giving Americans an extra hour of sunlight at the end of the workday, lawmakers said in a press release about the law. Passing the bill could “boost” the economy and act as a “stimulus package in its own right,” wrote Sam Lyman, policy director of the Orrin G. Hatch Foundation, in an op-ed in The Hill.
But the economic benefits of year-round DST may be more murky than its proponents suggest, according to PNC economist Kurt Rankin, who has done studies of time shifts and how they affect the economy. First off, there isn’t much research available on this topic, at least when compared to other aspects of the economy like wages or inflation. And existing research is limited in scope, raising questions about national economic implications.
“From an economic standpoint, I think the benefit will be minimal,” Rankin told CBS MoneyWatch. “It’s not something that’s going to cure the problems the US economy is facing over the next year or two — the inflation worries, rising interest rates, the supply chain bottlenecks.”
Much-cited evidence of the economic benefits of the switch comes from the JP Morgan Chase Institute, which found in 2016 that consumer spending fell 3.5% after Daylight Savings ended in November. This suggests that some consumers reduce spending when there is an hour less daylight at the end of the day to shop or run errands.
But the Chase Institute study focused on Los Angeles spending, a relatively limited scope. And the researchers found that other policy changes, such as B. a sales tax exemption, which could boost consumer spending more.
Some business groups say they are investigating the issue. The National Retail Federation said in an email it “has historically supported daylight saving time, but that position does not reflect the current debate on creating permanent daylight saving time, passed by the Senate this week.”
It added: “We are reviewing the implications of this change and consulting with our members.”
Could be a boost for restaurants
That being said, Rankin said the move to permanent DST could benefit one sector of the economy: hospitality businesses like restaurants and hotels. More daylight towards the end of the day could boost demand for these services, which would benefit both these businesses and gig economy workers like DoorDash drivers.
“It’s the sector that’s still having the most trouble recovering from the pandemic, so giving workers in that sector some reassurance will help,” he noted.
Rankin added that he himself likes the idea of a permanent move, although he sees little economic reason for the bill. “I’m in favor of getting rid of changing the clocks because it messes up your schedule,” he noted. “I had dinner an hour and a half late last week because I’m trying to adjust.”
Energy saving argument is “questionable”
Research on energy conservation – one of the main reasons supporters are suggesting making daylight saving time permanent – has been mixed. A 2008 Department of Energy study found electricity savings of 0.5% per day in the four weeks following the nationwide extension of daylight saving time in 2005.
Don’t the people cheering permanent Daylight Saving Time ever wake up before 7am?
— Anna Kramer (@akiltykramer) March 16, 2022
Yale University researchers found in a 2011 study that DST actually increased energy use in Indiana, as higher heating and cooling costs outweighed the reduced need for electric lighting. The researchers stated, “We find that the long-standing rationale for daylight saving time is questionable.”
But this paper is based on energy use in one state — again, a small portion of the US — and may not be more broadly applicable.
Unanimous approval in the Senate
The bill, passed unanimously by the Senate on Tuesday, must now be approved by the House of Representatives and signed by the President to become law.
At a hearing by the House Energy Subcommittee on Consumer Protection on March 9, experts urged lawmakers to make the change, citing issues such as safety and an increase in traffic accidents when commuters travel after dark.
“Put simply, darkness kills. And evening darkness is far more deadly than morning darkness,” said Steve Calandrillo, a professor at the University of Washington. https://t.co/VnTO2w8LJA
— CBS News (@CBSNews) March 15, 2022
“Put simply, darkness kills. And evening darkness is far deadlier than morning darkness,” Steve P. Calandrillo, a professor at the University of Washington, told the committee.
Americans themselves are divided on this issue, according to polls. About 3 in 10 people said they would like to have daylight saving time all year round, while an equal number said they would prefer to keep the current system of going back an hour in November and going forward an hour in March, an ` – 2019 NORC survey. Remaining 4 in 10 people said they wanted to switch to standard time year-round.
Ultimately, the rationale for moving to permanent daylight saving time can be down to personal preference, not economics. As JPMorgan Chase put it, Americans “may just enjoy having the extra daylight.”
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