Anderson 1

Claire Anderson
Professor Holloway
English 2010
February 18, 2014

The Effects and Costs of Crime
The economy greatly impacts the number of crimes committed in a society.
Many studies have proven that during economic recessions, crime rates increase
(Gjerso). However crime rates affect the economy more severely than the economy
affects crime
rates. The more
crime is evident in
society, the more
the economy will
suffer. Crime's
costs hurt every
member of the
community, not
just its victims and their immediate families, (Lenhardt). Crime results in excessive
government spending, increased prices, and needlessly expensive charges.


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Government Costs
Crime pressures the government into spending billions of dollars on
advanced security and other expenses each year. It is expected that the national
government will spend 262.2 billion dollars on protection for the United States in
2014. This includes police services, prisons, and public order and safety (Chantrill).
Governments pay $8 billion alone for emergency and restorative services to victims
a year,(Lenhardt). As the rate of crime increases, the amount of money the
government spends on security also increases. This includes police services,
prisons, and public
order and safety
(Chantrill). As the
rate of crime
increases, the
amount of money
the government
spends on protecting its citizens also increases.
On a local and state level, governments have to sacrifice money from their
budget to manage and run correction facilities. The costs of running these facilities
are continually rising for each state. State correctional obligations have increased
over the years because the prison population has grown considerably, due in part to
mandatory sentencing laws and longer prison terms. The total U.S. prison
population has swelled from nearly 330,000 inmates in 1980 to 1.57 million in
2012,(Pattison).
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Business Costs

Criminals also contribute to high prices of goods. Businesses lose billions of
dollars annually due to shoplifters. This affects the business and the consumers. In
order to compensate for the money lost from shoplifters, businesses have to
increase the prices of their goods (Hillstrom).
Employees also tend to steal from businesses. In fact, The U.S Chamber of
Commerce reports that an employee is 15 times more likely than a nonemployee to
steal from an
employer. These
employees cost U.S.
businesses twenty to
forty billion dollars a
year. In order to
make up for the
amount lost,
working men and women contribute around four hundred dollars per year ("Inc.").
Aside from theft, employers pay five billion dollars collectively each year due
to violent crimes according to the FBI Uniform Crime Reports (Lenhardt).
Individual Costs


Crime also creates unnecessary costs for individuals. Victims often replace
or repair stolen or damaged items at their own expense (Lenhardt). Not only do
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people pay for replacements
or damages done to personal
property, but they also spend
massive amounts of money to
prevent crime from
happening to them. Citizens
pay for alarms, video
surveillance cameras, and
other home security systems
in order to discourage criminals and catch them in the act.
Another common expense is Crime insurance. This does not prevent crime,
but it does help the victim pay the costs of items stolen or damaged in the case of
theft.

Conclusion

The numerous costs associated with crime are detrimental to the economy.
When criminal activity occurs, everyone in society has to suffer. Crime affects the
economy much more severely than the economys condition affects the rate of
crime. Criminal activity acts like a tax on the entire economy, (Detotto 330-345).
Through costs for prevention and costs for damages from crime, the economy is at a
loss when crime occurs. Governments have to spend more money, prices for goods
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are inflated, and personal expenses are magnified. Although many factors are
present in an economic downfall, crime rate should be included when considering
the contributing sources of the problem. Crime can be prevented through an
observer or participant, and as citizens of our community, state, and nation, it is our
duty to prevent crime whenever possible.

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Citations

Chantrill, Christopher. "Government Spending Details." US Government Spending.
N.p., 18 Feb 2014. Web. 18 Feb 2014.
<http://www.usgovernmentspending.com/year_spending_2014USbn_15bs2n_50



Hillstrom, . "Shoplifting Law and Legal Definition." U.S. Legal. Northern Lights, n.d.
Web. 18 Feb 2014. <http://definitions.uslegal.com/s/shoplifting/>.



Gjerso, J.F. The Economics of Violence . 2010. Chart. The Civilising Mission Web. 18
Feb 2014. <http://thecivilisingmission.com/2010/03/03/the-economics-of-
violence/>.



Lenhardt, Alfonso E. "The Economics of Prevention: Reducing Costs and Crime."
Police Chief Magazine. 7 Jul 2006: n. page. Web. 23 Feb. 2014.
<http://www.policechiefmagazine.org/magazine/index.cfm?fuseaction=display_arc
h&article_id=928&issue_id=72006>.



Pattison, Scott. "State Spending for Corrections." The National Association of State
Budget Officers. N.p., 11 Sep 2013. Web. 23 Feb 2014.
<https://www.nasbo.org/sites/default/files/pdf/State Spending for
Corrections.pdf>.




"Employee Theft Still Costing Businesses ." Inc.. May 1999: n. page. Web. 23 Feb.
2014. <http://www.inc.com/articles/1999/05/13731.html>.





Detotto, Claudio. "Does Crime Affect Economic Growth?." Ideas. 63.3 (2010): 330-
345. Web. 24 Feb. 2014. <http://ideas.repec.org/a/bla/kyklos/v63y2010i3p330-
345.html>.