Archive for the ‘Crime Economics’ Category

Crime budget questions we need answered

If you ask a Trentonian about their number one city issue, crime will probably come up. Yet we don’t really seem to have any clue about its measurable affects on our city or how to manage them.

Previously, I wrote about the cause and effect of a city’s crime level and it’s immigration level ( How Crime Affects Trenton). However, this is a very small part of the story. First, we have to agree on what it is about a city that we’d like to improve. In general, the best measure of a city’s health is its per capita income. Cities with high crime rates have low per capita incomes and vice-a-versa (The Economics of Crime).

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How crime affects Trenton

All Trentonians know that our high crime rate isn’t good for the economy. However, not many of us know just how bad it is. It turns out that economists have studied the subject and have asked themselves that very question.

In “CRIME, URBAN FLIGHT, AND THE CONSEQUENCES FOR CITIES”, economists Julie Berry Cullen and Steven D. Levitt worked through quite a bit of crime, census and other data in addition to third party research to build up an econometric model of the effects of crime. It’s worth noting that Steven Levitt later went on to write Freakonomics which is referenced in my earlier article on the economics of crime.

I’ve provided a link to the article but I’ve summarize it fairly simply below. I’ll warn readers of the report in advance that this is an academic paper and some of the conclusions it draws are a bit disturbing to the politically correct mind. Read the rest of this entry »

The Economics of Crime

One of, if the not the biggest thing holding back revitalization in American cities is crime.

The facts speak for themselves – cities with high crime rates generally have poor growth rates. Cities that have somehow improved their crime rate do much better.

City Comparison

New York and Washington, DC are great examples of cities that have aggressively attacked their crime issues and have unleashed unprecedented economic growth. Washington used to be the most dangerous city in America and New York was supposed to be leading the country into chaos.

Looking just at New Jersey, two cities, New Brunswick and Newark are overcoming their crime issues and generating positive population growth. Meanwhile, Asbury Park, Trenton and Camden continue to scare their populations away.

Lot’s of people have lots of things to say about crime. The police say they do all they can and blame the courts for a revolving door justice system or the public for not cooperating. Children’s advocates blame lack of after-school programs. Civil rights leaders blame racism. Parents blame everybody and Bill Cosby blames parents.

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