How does crime affect the economy?
Quick Answer
Crime affects the economy by placing a financial burden on taxpayers and governments because of increased needs for police, courts and corrections facilities, as well as intangible costs including psychological trauma and reduced quality of life for crime victims, according to Scott Erickson. In an article for The Daily Caller, Erickson cites a 1999 study conducted by economist David Anderson that estimated the cost of crime at $1.7 billion annually.
Continue ReadingFull Answer
This cost includes lost opportunities for victims and lost earnings by those serving time for criminal activity. Anderson estimates that each incarcerated person represents a productivity loss of $23,000. His study also estimates asset transfers due to crime at a half-trillion dollars. Asset transfers result from crimes such as insurance fraud, theft and graft. Anderson also estimates a $200 billion cost for the criminal justice system. This includes costs for local, state and federal law enforcement, courts and prisons.
According to Citylab, crime is episodic and does not necessarily go up or down during hard economic times. Studies and statistics show that crime has risen and fallen during times of economic decline, depending on many factors, including location. Criminologists tend to argue that crime rises when the economy falters, while economists tend to argue that crime falls along with the economy.
Learn more about EconomicsRelated Questions
-
Q:
What is the impact of inflation on the Indian economy?
A: Inflation affects the value of currency within individual countries as well as in the global economy, and high inflation rates can negatively impact the ev... Full Answer >Filed Under: -
Q:
What causes currency fluctuation?
A: Currency fluctuation, also called voltage fluctuation, is caused primarily by a reduced quality of power supply stemming from corroded or loose wire connec... Full Answer >Filed Under: -
Q:
What is the importance of the WTO?
A: The World Trade Organization ensures that countries that trade goods and services have a say in how trade is conducted on an international level, thereby p... Full Answer >Filed Under: -
Q:
What is a megatrend?
A: A megatrend is a long-term change that affects governments, societies and economies permanently over a long period of time. Megatrends drive other trends i... Full Answer >Filed Under:
You May Also Like
-
Q:
Why does the cost of milk vary?
-
Q:
What are three economic questions every society must answer?
-
Q:
What are secondary consumers of the desert?
-
Q:
What are some tips for putting together a neighborhood crime watch program?
-
Q:
What is the formula used to calculate labor productivity?
-
Q:
Where can you find statistics for American finances?
