Twice a year, most Americans adjust their clocks — one hour forward in the spring, one hour back in the fall. This routine, known as Daylight Saving Time (DST), was originally designed to maximize daylight hours and reduce energy use. But as our modern lives evolve, so do questions about whether this time-shifting tradition still makes sense.
While DST comes with a number of benefits, it also comes with hidden costs — from disrupted sleep and reduced productivity to increased health risks and economic losses. So, does Daylight Saving Time actually save or cost the U.S. money? Let’s dive into the history, the original goals, and what the numbers really say.
Key Points
• Daylight Saving Time (DST) in the U.S. has economic benefits like increased consumer spending and reduced lighting needs.
• DST can boost outdoor activities and public safety, with a 13% reduction in pedestrian fatalities and a 7% drop in robberies.
• DST also leads to significant costs, estimated at $672.02 million annually, primarily from health risks and accidents.
• Health risks include a 10% increase in heart attacks and higher stroke incidence following the spring time change.
• Potential benefits of eliminating DST include improved sleep patterns and productivity and fewer disruptions and confusion.
What Is Daylight Savings Time?
Daylight Saving Time (DST), commonly referred to simply as “daylight savings,” is the practice of moving the clocks forward one hour ahead of local standard time in the spring to achieve longer evening daylight in summer. In effect, an hour of daylight is shifted from the morning to the evening each spring.
In the U.S., DST begins on the second Sunday of March and ends on the first Sunday of November, when we move the clocks back one hour, and always starts and ends at 2 a.m. People often rely on the phrases “spring forward” and “fall back” to remember which way to reset the clock.
The idea behind daylight savings is simple: by syncing the time people are active with daylight, we might use less artificial lighting — and, in theory, save energy and live more economically and efficiently.
A Brief History
The concept of DST dates back to the early 20th century. Though Benjamin Franklin is credited as the first to suggest shifting time to conserve energy, the modern practice wasn’t implemented until World War I, when it was temporarily adopted as a wartime measure to help conserve fuel and power and extend the work day. During World War II, DST was reintroduced and referred to as “War Time.”
After World War II, DST was repealed again, allowing states to establish their own standard time. For the next two decades, there were no set rules for DST, which led to significant confusion in the transportation and broadcast industries.
In 1966, the U.S. passed the Uniform Time Act, standardizing the start and end dates of DST, while allowing states to opt out by passing a state law. Currently, all states except Hawaii and most of Arizona observe DST. American territories, including Guam, American Samoa, Puerto Rico, and the Virgin Islands, do not follow DST.
Who Benefits From Daylight Savings Time?
Many people and industries benefit from Daylight Savings Time. Here’s a look at some of the advantages of moving the clocks ahead by an hour each spring.
• Encourages activity: Proponents of DST note that longer evenings motivate people to get off the house and engage in outdoor recreation like walking, running, baseball, tennis, soccer, golf, etc. For parents, the extra hour of daylight can mean more outdoor activity for their children. As a result, changing the clocks each spring may help counteract our modern sedentary lifestyle.
• Reduces lighting needs: An extra hour of daylight helps to reduce the need to use electricity for lighting, which can reduce energy costs. However, people today tend to use computers, screens, and air conditioning units whether it is light or dark out. As a result, many economists say the amount of energy saved from DST is minimal.
• Improves public safety: Daylight Saving Time’s longer daylight hours can help reduce the risk of pedestrians and cyclists being hit by cars. Indeed, studies have found that DST reduces pedestrian fatalities by as much as 13% during dawn and dusk hours. An extra hour of sunshine can also deter criminals, who generally prefer to commit crimes at night. Research has found that robberies drop about 7% overall and 27% in the evening hours after the spring time change.
• Stimulates the economy: More hours of daylight in the warm months may incentivize people to shop, dine, drive, play golf, and spend money in other ways after work, giving the economy a boost. Chambers of commerce generally support DST, saying it causes consumer spending to increase and has a positive effect on their local economies.
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How Much Does Daylight Savings Cost Americans?
Despite the potential benefits, there’s growing evidence that DST also carries real and measurable downsides — from health consequences to lost productivity.
• Health impacts: Moving the clock forward, even by just an hour, can have a negative effect on the body’s natural circadian rhythm, which can harm our health. One study found that the risk of a heart attack increases 10% the Monday and Tuesday following the Sunday we “spring forward.” Research also indicates that there is a higher incidence of strokes and suicides, along with a general decreased quality of life, on the days and weeks following the spring time shift.
• Productivity loss: The Monday following the day we move the clocks one hour ahead is often referred to as “sleepy Monday,” since it’s one of the most sleep-deprived days of the year. Economists have found that the spring time change can actually kick off an entire week or lower worker productivity — including an increase in “cyberloafing” (i.e., wasting time on the internet while at work) — due to fatigue. Some also point out that the 10 minutes or so people spend simply changing clocks, watches and other devices forward (and then later reversing the process) also leads to lost productivity and earnings. In other words, we could be doing something better with that time.
• Increased accidents: While longer daylight may help pedestrians, studies show a 6% increase in fatal car crashes during the five weeks after the spring shift — possibly due to drowsy driving or people rushing because they are running late.
• The financial toll: A 2024 report by Chmura Economics & Analytics estimates that the total economic cost of DST is around $672.02 million per year, largely due to the health implications and increased traffic/workplace accidents attributed to the spring time shift.
This total cost includes:
◦ $374.75 million from increased heart attacks
◦ $251.53 million from increases in strokes
◦ $18.35 million from additional workplace injuries
◦ $27.39 million from increases in traffic accidents
What Would Happen if Daylight Savings Time Was Removed?
Many Americans are in favor of getting rid of twice-annual clock changes. In fact, more than 30 states have introduced bills to replace daylight saving time with one stable time, and the issue has also been the subject of legislation in the U.S. Congress. As of this writing, however, daylight saving time is not ending across the U.S.
But what would happen if it did?
Whether the U.S. opted for permanent DST or permanent standard time, we would no longer need to worry about remembering to change the time on our watches and clocks, losing an hour of sleep, and feeling tired after we “spring forward.” This could help keep sleeping patterns more consistent year-round, potentially improving people’s health, productivity, and quality of life.
Many businesses would likely also benefit: Without the biannual adjustment, employees would maintain regular sleep schedules, and companies could avoid the drop in efficiency and focus that occurs after each time shift.
Getting rid of DST would also eliminate the temporary increase in auto and workplace accidents after we spring forward, along with confusion around timing caused by the fact that not all U.S. states, and not all countries, implement DST.
But there are also some downsides to getting rid of DST. If we opt for year-round standard time, we would lose that extra hour of evening sunlight in summer. Though the days are naturally longer in the spring/summer, losing that additional hour could lead to less outdoor recreation and physical activity. It could also reduce foot traffic for businesses like restaurants and retail shops during summer evenings.
If we opt for year-round DST, it wouldn’t get dark quite so early during the winter months, but mornings would be darker. This could make it harder to wake up for work, and also raise safety concerns for children walking to school and commuters traveling in the early hours.
The Takeaway
So, does Daylight Saving Time cost the U.S. money? The answer is: yes. Studies have estimated the annual cost could actually exceed $672 million per year.
While DST offers seasonal perks for retail, recreation, and crime prevention, its broader impacts on health, productivity, and safety are substantial. The original energy-saving rationale no longer holds much weight in the modern world — and research increasingly shows the economic and human costs of DST may outweigh its benefits.
While DST in the U.S. isn’t going away (yet), the debate continues — with each spring and fall reigniting questions about whether DST truly serves American citizens and the modern economy.
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FAQ
Does daylight saving time save money?
Daylight Saving Time was initially implemented to save energy, but its effectiveness in modern society is debated. Some studies suggest it can reduce electricity usage slightly by shifting peak demand, while others find no significant savings or even increased costs due to higher air conditioning use. The overall financial impact is minimal and varies by region.
How does daylight saving time boost the economy?
Daylight Saving Time can boost the economy by extending evening daylight, which encourages outdoor activities and shopping. This can lead to increased consumer spending, particularly in retail and entertainment sectors. Sports and leisure industries also benefit from more daylight hours, as people are more likely to engage in outdoor activities after work.
What are the downsides to daylight savings?
Daylight Saving Time has several downsides, including disrupted sleep patterns and increased risk of accidents and health issues (including heart attacks and strokes) in the days following the time change. It can also affect productivity and mood, especially for those with sleep disorders. Moreover, the energy savings are often negligible, and the transition can cause confusion and scheduling issues.
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