The Economics of Crime by Gracie George
Association for Black Economic Power's vision is to help close the racial wealth gap for residents in North Minneapolis and by extension solve other problems caused by the wealth gap like crime.
We know that crime is a widespread problem around the world, including in the United States. But the question is why? Well, economist David Friedman would say that resources are scarce, and because resources are scarce a criminal is a criminal for the same reason as he is an economist because it was the most attractive option available to him (Freidman, 2020). That is to say, Economics is a profitable field, something I am sure Freidman took into account when selecting a college major. Hypothetically and alternatively, he could have majored in something else. For example, he could have majored in theater. However, few lucky individuals make a living from acting, so theater probably would not have given him a financially stable and secure life. He also could have gone into medicine, but the process of becoming a doctor is long and costly, and you have to truly be one of the best to make the big bucks. So, after looking at the cost and benefits of alternative careers, as well as his skillset, Economics most likely offered him the best incentive. Subsequently, Economists operate from the standpoint that like Friedman, all people are rational and therefore weigh the cost and benefits of all their choices, this includes the choice to commit a crime (Freidman, 2020).
Naturally, you cannot talk about economics and crime without talking about race. Race and ethnicity have been recognized as important factors in the study of crime and its impact on society. Furthermore, economic hardship has been deemed especially critical in grasping an understanding of the disparity between the crime rates of blacks and whites in the United States (Stoltenberg et al., 2006). This is because according to the Bureau of Justice Statistics, Black Americans are more likely to be incarcerated than their white counterparts; Black Americans made up 33% of the prison population, despite representing only 12% of the US population (Gramlich, 2020). But this is not surprising given that communities of color are disproportionately affected by poverty and economic hardship, which plays a part in promoting criminal behavior. David Freidman may have weighed his options when deciding on a college major, but the fact is according to a recent study done by the United Negro College Fund, many Black students lack the resources needed to even get into college let alone succeed there. Those that do manage to make it to college often drop out because the financial burden is just too much. And those that do graduate do so with debt that will take years and years to pay off.
So, from an Economic standpoint, in the aforementioned scenarios, someone who is unable to go to college may resort to theft or drug trafficking because they cannot find a legal job that pays enough to support themselves or their family because studies show that college graduates make more money than non-college graduates. Therefore, reducing the benefits able to be reaped from illegal activities, by providing job training and access to affordable education, could be an effective way to reduce crime. Of course, on the other hand, because disparities are complex and multifaceted, and they affect all aspects of society, from access to education to employment and other economic opportunities, studies have shown that black Americans, regardless of education, are more likely to live in poverty and to face discrimination in the job market, which can limit their access to stable employment and make them more likely to engage in criminal activity.
Therefore, by understanding the incentives and costs of criminal behavior, economists and communities of color alike can develop strategies to prevent crime and reduce its impact on society. So, while ABEP’s goal is to help close the economic wealth gap of the community in which it seeks to serve, it could also help reduce the crime rate in those same communities.
Citation
Friedman, D. D., RELATED CONTENT By Amy Willis, Henderson, D. R., Small, K. A., Siegel, J. J., & Rubin, P. H. (2020, March 19). Crime. Econlib. Retrieved April 15, 2023, from https://www.econlib.org/library/Enc/Crime.html
Gramlich, J. (2020, August 27). The Gap Between the number of Blacks and Whites in Prison is Shrinking. Pew Research Center. Retrieved April 17, 2023, from https://www.pewresearch.org/fact-tank/2019/04/30/shrinking-gap-between-number-of-blacks-and-whites-in-prison/
Stolzenberg, L., Eitle, D., & D'Alessio, S. J. (2006). Race, Economic Inequality, and Violent Crime. Journal of Criminal Justice, 34(3), 303–316. https://doi.org/10.1016/j.jcrimjus.2006.03.002