NearPod Economics of Crime Prevention Round 1 PDF

Thinking CRIME Questions to address. ◦ What is crime? ◦ What role should government play in crime prevention? ◦ What is the optimal level of crime prevention? ◦ How should resources devoted to crime prevention be allocated? ◦ What are the causes of criminal activity? THE ECONOMICS OF CR...

Thinking CRIME Questions to address. ◦ What is crime? ◦ What role should government play in crime prevention? ◦ What is the optimal level of crime prevention? ◦ How should resources devoted to crime prevention be allocated? ◦ What are the causes of criminal activity? THE ECONOMICS OF CRIME… OUR FIRST “SOCIAL ISSUE” But 1st… some housekeeping “Return” Test #1: NO phones or electronic devices while reviewing S&D work… Review key questions/topics ◦ Extra Credit _Bell Work: Do De-briefing on Test #1” ◦ What Round 2: Economics of Social Issues, looks like on Canvas Noon DOW: 43,077 @ open Night: DOW: 43,239 @ close (38th 2024 “record high”) What is Crime? What is “criminal’ to you? What is Crime? What is “criminal’ to you? ◦ Varies from person to person, jurisdiction to jurisdiction What is Crime? What is “criminal’ to you? ◦ Varies from person to person, jurisdiction to jurisdiction Immoral vs. Illegal (complicating the question) What is Crime? What is “criminal’ to you? ◦ Varies from person to person, jurisdiction to jurisdiction Immoral vs. Illegal (complicating the question) ◦ Distinctions are cut & dried for some acts Murder & theft…both illegal & immoral What is Crime? What is “criminal’ to you? ◦ Varies from person to person, jurisdiction to jurisdiction Immoral vs. Illegal (complicating the question) Distinctions are cut & dried for some acts Murder & theft… ◦ Other times, it depends upon society’s evaluation in others… adultery, betting on horse races We tend to make something “illegal” if? 1. It is Offensive! to the moral standards of a majority of legislators or their constituents. (murder, rape, theft) We tend to make something “illegal” if? 1. It is Offensive! to the moral standards of a majority of legislators or their constituents. (murder, rape, theft) 2. “We” have to save you from your own ignorance! (taking illegal drugs, drinking, not buckling up) We tend to make something “illegal” if? 1. It is Offensive! to the moral standards of a majority of legislators or their constituents. (murder, rape, theft) 2. “We” have to save you from your own ignorance! (taking illegal drugs, drinking, not buckling up) 3. It promotes order…which means preventing chaos! (traffic rules)… “law & order”… go together We tend to make something “illegal” if? 1. It is Offensive! to the moral standards of a majority of legislators or their constituents. (murder, rape, theft) 2. “We” have to save you from your own ignorance! (taking illegal drugs, drinking, not buckling up) 3. It promotes order…which means preventing chaos! (traffic rules)… “law & order”… go together 4. Doing it is contrary to the “general welfare” of society. (burning your own trash in town, lawn is too ‘wild’) And the trick…human nature and lack of agreement: Illegal or Immoral…or Both… Neither? Killing your neighbor’s annoying dog And the trick…human nature and lack of agreement: Illegal or Immoral…or Both… Neither? Killing your neighbor’s annoying dog ◦ is… BOTH?...NEITHER?… in the right context (off their property & threatening) And the trick…human nature and lack of agreement: Illegal or Immoral…or Both… Neither? Mailing anthrax spores to your former boss And the trick…human nature and lack of agreement: Illegal or Immoral…or Both… Neither? Mailing anthrax spores to your former boss ◦ ILLEGAL and IMMORAL (not a good idea) And the trick…human nature and lack of agreement: Illegal or Immoral…or Both… Neither? Entering the U.S. without “paperwork” in place And the trick…human nature and lack of agreement: Illegal or Immoral…or Both… Neither? Entering the U.S. without “paperwork” in place ILLEGAL? IMMORAL? BOTH? NEITHER? … refugee status/political asylum So… what is “criminal”? So… what is a criminal act? A Criminal Act is one the society (or one of its subdivisions) has decided is better off without and?? So… what is a criminal act? A Criminal Act is one the society (or one of its subdivisions) has decided is better off without and ◦ which it therefore makes illegal through laws, ordinances, and the like ◦ So… what is a criminal act? A Criminal Act is one the society (or one of its subdivisions) has decided is better off without and ◦ which it therefore makes illegal through laws, ordinances, and the like Are all crimes immoral? So… what is a criminal act? A Criminal Act is one the society (or one of its subdivisions) has decided is better off without and ◦ which it therefore makes illegal through laws, ordinances, and the like Are all crimes immoral? ◦ No… Maybe, maybe not. Next Q: What are the costs of crime? Next Q: What are the costs of crime? Definitely costs… life, property, time, etc. ◦ But not an accurate measure of those costs 1. Many crimes go unreported 2. Often, accurate dollar value cannot be attached to the cost of crimes that are reported. Next Q: What are the costs of crime? Definitely a cost ◦ But not an accurate measure of those costs 1. Many crimes go unreported 2. Often, accurate dollar value cannot be attached to the cost of crimes that are reported. Given these hurdles, why should we try to measure the costs of crime & crime prevention?  Experts Report Challenges Estimating Costs and Suggest Improvements to Better Inform Policy Decisions Experts Report Challenges Estimating Costs and Suggest Improvements to Better Inform Policy Decisions Experts Report Challenges Estimating Costs and Suggest Improvements to Better Inform Policy Decisions Crime and society’s response to it pose significant costs to the United States. The Department of Justice’s Bureau of Justice Statistics reported that federal, state, and local governments collectively spent over $280 billion in fiscal year 2012 (adjusted to 2016 dollars) on criminal justice programs such as? Experts Report Challenges Estimating Costs and Suggest Improvements to Better Inform Policy Decisions Crime and society’s response to it pose significant costs to the United States. The Department of Justice’s Bureau of Justice Statistics reported that federal, state, and local governments collectively spent over $280 billion in fiscal year 2012 (adjusted to 2016 dollars) on criminal justice programs such as? police protection (the cops), the court system (the courts), and incarceration. (the can) Measuring crime’s “costs” That crime data focus on what? Measuring crime’s “costs” That crime data focus on what? ◦ # of crimes, not dollar estimates of their costs… but we know better: costs should consider what economic “cost” principle? Measuring crime’s “costs” That crime data focus on what? ◦ # of crimes, not dollar estimates of their costs… but we know better… costs should consider? “Opportunity Cost” principle—including?? Measuring crime’s “costs” That crime data focus on what? ◦ # of crimes, not dollar estimates of their costs… but we know better… costs should consider? Opportunity Cost Principle—such as? ◦ Crime costs –lost $, lives, property, etc. ◦ Related “opportunity” costs –loss of wages, sanity, etc. ◦ PLUS! “traditional” crime prevention expenditures Measuring crime’s “costs” That crime data focus on what? ◦ # of crimes, not dollar estimates of their costs… but we know better… costs should consider? Opportunity cost principle—such as? ◦ Crime costs –lost $, lives, property, etc. ◦ Related “opportunity” costs –wages, sanity, etc. ◦ PLUS! “traditional” crime prevention expenditures As noted in the research… 1. Detect/apprehend, 2. determine guilt/innocence, 3. punish/rehabilitate aka, “The Cops, the Courts, and the Can” Is $280.0 Billion enough? ◦ This number estimates what part of the cost of crime? Is $280.0 Billion enough? ◦ This number estimates what part of the cost of crime? Cost of crime prevention at federal, state & local level Is $280.0 Billion enough? ◦ This number estimates what part of the cost of crime? Cost of crime prevention at federal, state & local level Is that “the total cost of crime”? Is $280.0 Billion enough? ◦ This number estimates what part of the cost of crime? Cost of crime prevention at federal, state & local level Is that “the total cost of crime”? No, it leaves out a substantial part of the cost of crime… like what? Is $280.0 Billion enough? ◦ This number estimates what part of the cost of crime? Cost of crime prevention at federal, state & local level Is that “the total cost of crime”? No, it leaves out a substantial part of the cost of crime… like what? Loss of life (direct cost) Loss of wages (direct cost) Loss of property (direct cost) Loss of sanity/security (negative externalities) Is $280.0 Billion enough? ◦ This number estimates what part of the cost of crime? Cost of crime prevention at federal, state & local level Is that “the total cost of crime”? No, it leaves out a substantial part of the cost of crime… like what? Loss of life (direct cost) Loss of wages (direct cost) Loss of property (direct cost) Loss of sanity/security (negative externalities) But these are much harder to “quantify” Key Points—The Costs of Crime Opportunity Cost Direct costs Principle + Negative Externalities + Cost of Prevention, Apprehension and Correction Total Cost of Crime Key Points—The Costs of Crime Opportunity Cost Direct costs Principle + Negative Externalities (??) + Cost of Prevention, Apprehension and Correction Total Cost of Crime In total--The “cost of crime” is hard to pinpoint. Next Q... What role should government play in crime prevention? Leading to another economic concept: Different Types of Goods & Services Different Types of Goods & Services Different goods serve us differently… Different Types of Goods & Services Different goods serve us differently… ◦ At a personal, mutually beneficial, & societal level…. Leading to 3 classifications. Different Types of Goods & Services Different goods serve us differently… ◦ At a personal, mutually beneficial, & societal level…. Leading to 3 classifications. Private Semiprivate Public Different Types of Goods & Services Different goods serve us differently… ◦ At a personal, mutually beneficial, & societal level…. Leading to 3 classifications. Private Semiprivate Public These classifications help answer “What role should government play in crime prevention?” Characteristics of Goods & Services Exclusivity—a good is “exclusive” if? Characteristics of Goods & Services Exclusivity—a good is “exclusive” if? ◦ Those other than the direct consumer of the item can be prevented from using the good…. Examples? Characteristics of Goods & Services Exclusivity—a good is “exclusive” if? ◦ Those other than the direct consumer of the item can be prevented from using the good…. Examples? ◦ “your toys”, a burger, a massage Characteristics of Goods & Services Exclusivity—a good is “exclusive” if? ◦ Those other than the direct consumer of the item can be prevented from using the good…. Examples? “your toys”, a burger, a massage Rivalry—a good is “rival in consumption” if? Characteristics of Goods & Services Exclusivity—a good is “exclusive” if? ◦ Those other than the direct consumer of the item can be prevented from using the good…. Examples? Dallin’s “toys”, a burger, a massage Rivalry—a good is “rival in consumption” if? ◦ The consumption by one reduces the ability of others to consume the item. Examples? Characteristics of Goods & Services Exclusivity—a good is “exclusive” if? ◦ Those other than the direct consumer of the item can be prevented from using the good…. Examples? “your toys”, a burger, a massage Rivalry—a good is “rival in consumption” if? ◦ The consumption by one reduces the ability of others to consume the item. Examples? Roads & library books are “rival in consumption”—available to “anyone” but once one person has it, its theirs. Private Goods & Services Any goods or service that gives satisfaction only to the person who consumes them. Private Goods & Services Any goods or service that gives satisfaction only to the person who consumes them. Is a private good “exclusive”? Private Goods & Services Any goods or service that gives satisfaction only to the person who consumes them. Is a private good “exclusive”? ◦ Yes…consumed by one person “exclusively’ Private Goods & Services Any goods or service that gives satisfaction only to the person who consumes them. Is a private good “exclusive”? ◦ Yes…consumed by one person “exclusively’ Is a private good “rival in consumption”? Private Goods & Services Any goods or service that gives satisfaction only to the person who consumes them. Is a private good “exclusive”? ◦ Yes…consumed by one person “exclusively’ Is a private good “rival in consumption”? ◦ Yes, if you get it, its not available for others to consume Private Goods & Services Any goods or service that gives satisfaction only to the person who consumes them. Is a private good “exclusive”? ◦ Yes…consumed by one person “exclusively’ Is a private good “rival in consumption”? ◦ Yes, if you get it, its not available for others to consume Who gets which “private goods & services”? Private Goods & Services Any goods or service that gives satisfaction only to the person who consumes them. Is a private good “exclusive”? ◦ Yes…consumed by one person “exclusively’ Is a private good “rival in consumption”? ◦ Yes, if you get it, its not available for others to consume Who gets which “private goods & services”? A competitive market does a very good job of allocating private goods & services Semiprivate Goods & Services Goods & services that yield satisfaction to the individual doing the consuming but also affect the satisfaction of others… “hybrids” Semiprivate Goods & Services Goods & services that yield satisfaction to the individual doing the consuming but also affect the satisfaction of others… “hybrids” ◦ Are semiprivate goods “exclusive” & “rival in consumption”? Semiprivate Goods & Services Goods & services that yield satisfaction to the individual doing the consuming but also affect the satisfaction of others… “hybrids” ◦ Are semiprivate goods “exclusive” & “rival in consumption”? No, they are one OR the other…. Mixed nature ◦ Examples of semiprivate goods? Semiprivate Goods & Services Goods & services that yield satisfaction to the individual doing the consuming but also affect the satisfaction of others… “hybrids” ◦ Are semiprivate goods “exclusive” & “rival in consumption”? No, they are one OR the other…. Mixed nature ◦ Examples of semiprivate goods? Neighbor’s music, landscaping, etc. +, - (non-rival) Immunizations—”double positive” (exclusive yet for “common good”) Introducing ‘Externalities” Such an important economic concept… a term to relate how one’s actions impact others...and explains how a “go-between” (like a government entity) can be necessary to address these impacts Spillovers (aka externalities) —the outpouring of + & - What is a benefit (or cost) that accrues to those other than the consumer called--economically speaking? Spillovers—the outpouring of + & - What is a benefit (or cost) that accrues to those other than the consumer called, economically speaking? A Positive (or Negative) “Externality” Spillovers—the outpouring of + & - What is a benefit (or cost) that accrues to those other than the consumer called, economically speaking? A Positive (or Negative) “Externality” Known more fully/officially as “A Positive Externality in Consumption” example: education + or “A Negative Externality in Consumption” example: smoking - Spillovers—the outpouring of + & - What is a benefit that accrues to those other than the consumer called, economically speaking? An “Externality”, known officially as Positive/Negative Externalities in Consumption (education +, smoking -) ◦ Given that semi-private goods have externalities, can the market “maximize social well-being” in allocating semi-private goods? Spillovers—the outpouring of + & - What is a benefit that accrues to those other than the consumer called, economically speaking? An “Externality”, known officially as Positive/Negative Externalities in Consumption (education +, smoking -) ◦ Does the market maximize social well-being in allocating semi-private goods? Not always… government intervention may improve allocation (and/or reduce the negative externality’s impact on others) Spillovers—the outpouring of + & - What is a benefit that accrues to those other than the consumer called, economically speaking? An “Externality”, known officially as Positive/Negative Externalities in Consumption (education +, smoking -) ◦ Does the market maximize social well-being in allocating semiprivate goods? Not always… govt. intervention may improve allocation ◦ How can government “internalize” a negative externality? (ie, make the “problem causer” pay?) Spillovers—the outpouring of + & - What is a benefit that accrues to those other than the consumer called, economically speaking? An “Externality”, known officially as Positive/Negative Externalities in Consumption (education +, smoking -) ◦ Does the market maximize social well-being in allocating semiprivate goods? Not always… govt. intervention may improve allocation ◦ How can government “internalize” the negative externality? Using taxes or regulations...Classic example: $1.01/pack federal cigarette tax to fund “negatives” like lung cancer research and to pay for “don’t smoke” education Public Goods & Services Goods that, if provided to one, yield benefits to all… “everybody is in” =) Public Goods & Services Goods that, if provided to one, yield benefits to all🡪No one can identify the specific part of the benefit received and no one can be excluded from the benefit Public Goods & Services Goods that, if provided to one, yield benefits to all🡪No one can identify the specific part of the benefit received and no one can be excluded from the benefit Neither exclusive NOR rival in consumption Public Goods & Services Goods that, if provided to one, yield benefits to all🡪No one can identify the specific part of the benefit received and no one can be excluded from the benefit Neither exclusive NOR rival in consumption ◦ Even a competitive market tends to fail in allocating these goods in a way that maximizes social well-being. Public Goods & Services Goods that, if provided to one, yield benefits to all🡪No one can identify the specific part of the benefit received and no one can be excluded from the benefit Neither exclusive NOR rival in consumption ◦ Even a competitive market tends to fail in allocating these goods in a way that maximizes social well-being. GOVERNMENT intervention is usually NEEDED & government intervention is typically more extreme. Government: The Glorious Producer of Public Goods Best, biggest example? Government: The Glorious Producer of Public Goods Best, biggest example? National Defense Government: The Glorious Producer of Public Goods Best, biggest example?…National Defense Does government “have to” defend us? Government: The Glorious Producer of Public Goods Best, biggest example…National Defense Does government “have to” defend us? ◦ Well… maybe, working together, via “Group Action”, we can provide goods/services we couldn’t provide individually Government: The Glorious Producer of Public Goods Best, biggest example…National Defense Does government “have to” defend us? ◦ Well… maybe, working together, via “Group Action”, we can provide goods/services we couldn’t provide individually ◦ Let’s talk about helping “the world”: contribute to the board of good deeds! Government: The Glorious Producer of Public Goods Best, biggest example…National Defense Does government “have to” defend us? ◦ Well… maybe, working together, via “Group Action”, we can provide goods/services we couldn’t provide individually ◦ Do you voluntarily provide a group benefit? snow plowing your street, cleaning up a park area, etc. Government: The Glorious Producer of Public Goods Best, biggest example…National Defense Does government “have to” defend us? ◦ Well… maybe, working together, via “Group Action”, we can provide goods/services we couldn’t provide individually ◦ Do you voluntarily provide a group benefit? snow plowing your street, cleaning up a park area, etc. What’s the “problem” with acting “kindly”? Government: The Glorious Producer of Public Goods Best, biggest example…National Defense Does government “have to” defend us? ◦ Well… maybe, working together, via “Group Action”, we can provide goods/services we couldn’t provide individually ◦ Do you voluntarily provide a group benefit? snow plowing your street, cleaning up a park area, etc. What’s the “problem” with acting kindly? We don’t have enough time/$/resources to keep that up and what about those who benefit but don’t contribute, known as? Government: The Glorious Producer of Public Goods Best, biggest example…National Defense Does government “have to” defend us? ◦ Well… maybe, working together, via “Group Action”, we can provide goods/services we couldn’t provide individually ◦ Do you voluntarily provide a group benefit? snow plowing your street, cleaning up a park area, etc. What’s the “problem” with acting charitable? Those who benefit but don’t do their part, known as? FREE-RIDERs Government: The Glorious Producer of Public Goods Best, biggest example…National Defense Does government “have to” defend us? ◦ Well… maybe, working together, via “Group Action”, we can provide goods/services we couldn’t provide individually ◦ Do you voluntarily provide a group benefit? snow plowing your street, cleaning up a park area, etc. What’s the “problem” with acting charitable? Those who benefit but don’t do their part, known as? FREE-RIDERs. When volunteering won’t work (aka, “the free-rider problem”), government (a “coercive” association) can remedy the problem by coordinating the “good deeds” we need done. Confirming link between “That Good Type!” & Govt. (Pv, S-Pv, Pub) ◦ · Primary education… learning to read & write (private-->semi-private-->public) ◦ · Botox treatments (Private-->Semi-private) ◦ · Yellowstone National Park (Public-->Semi-private) ◦ · Your neighbor’s lovely landscaping (Semi-private) ◦ · Free/reduced lunch programs at your local school (Private--Semi-private-->Publicly funded) ◦ · Pollution prevention products (Semi-private--> Regulated/Public) ◦ · Antibiotics that make ebola less of a killer (Semi-private) ◦ · College education (Private-->semi-private-->publicly funded) For next time… Enjoy “Fall Break” GET BOOK & START NOW: READ & MARK “Think Like a Freak: there will be 2 rounds of presentations (Ch. 1-4 and Ch. 5-9)... and a test for each round ◦ Get very familiar with the economic approaches on problem solving (teams to be assigned: make sure you did your TLAF Preference Form–due tomorrow midnight) Expect a graded in-class exercise on Cost/Benefit Analysis… “next time”/Tuesday Today’s Exit Ticket: Is $280 Billion enough? ◦ Any Qs?