On the River Subject Externalities Topic Government and the Economy Key Words Social costs, tax News Story Accidents on waterways are increasing at a fast rate. In 1999, there will be approximately 8,000 accidents, up approximately 33 percent from six years ago. Also, people are buying bigger boats than before.
More boats mean that waterways are crowded and water rage results.
In addition, problems result from drunk boating and inexperienced and uneducated boat users. The U.S. Coast Guard has cut its staff and its expenses, making policing of boat traffic more difficult. As a result, some harbors are increasing their patrols and sobriety checks. Certain states are considering requiring licenses and liability insurance. However, there is concern that additional regulations may deter tourists.