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I don't have time to watch the whole Friedman lecture but his first few examples are about market failures, which is a slightly different topic to what I was getting at. What I was trying to express (and didn't do a great job of) was that in discussions of policies, there are often costs that are not mentioned so we never get a full cost/benefit comparison. The specific examples are just examples of the "missing" costs and I wasn't trying to do a full accounting of all the costs/benefits in each example.
I used expected life-years lost for driving 5 miles, which is approximately 1.46/100m * (5 miles) * (50 years of life left), which multiplies to about 2 minutes. Urban driving reduces that by about half, so it really should be about 1 minute. The specific numbers are not important though; the public conversation was only ever about Vision Zero rather than trip times.
Also true! But the numbers matter. I don't think there are a lot of people in my neighborhood whose behavior will be changed by these particular road diets - as I mentioned downthread, there is already a dedicated bike path a block away, and also the neighborhood is hilly, which is a non-starter for most people to bike. I will state that in a full cost-benefit accounting, the road diet might make sense. No one did that analysis though; it was all one-sided statistics and aesthetic judgments.
One of the causes of market failures is diffuse costs or diffuse benefits. Some examples in the video include tariffs and drug regulation.
There are theoretically infinitely many costs and benefits to any policy (or if not, far more than could be feasibly thought of and estimated, especially once you start taking into account 2nd order effects, or 3rd order effects, etc). I don't think the process of choosing what to ignore is really related to whether the costs and benefits are diffuse or not, except to the extent that diffuse costs and benefits may be harder to see. For the most part, I think whether someone thinks of a diffuse cost or benefit is, like most other arguments, related to their bias or personal experience rather than anything else. Like with the travel time example, both of the things you mention are somewhat diffuse (exactly how diffuse depending on how many people cycle or walk vs driving, which depends on the policy itself, which makes it even more complicated). Someone advocating for reducing traffic volume is probably going to focus on cyclist and pedestrian deaths because (depending on how charitable we're being) deaths are more important than commute time and/or they have ideological preferences for bikes over cars.
If you want to say an argument is being unfairly ignored, I think you do have to show that it is at least plausibly of the correct scale to be relevant.
Ok, but then I think your interpretation is off: Both numbers apply to 1 single trip. Every other person who does the same drive will face the same delay and also increase risk by the same amount (glossing over any issues with induced demand, assuming marginal = average, etc).
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