1. Llad Phillips1 Social Welfare The Impact of Crime on Society

2. Llad Phillips2 Outline and Issues n Course logistics: http://www.econ.ucsb.edu http://www.econ.ucsb.edu n Criminal Justice System (CJS) & economic paradigm: where do the values (prices) come from to evaluate the states (outcomes) of the CJS? n How much crime is there? How do we know? n Crime has two effects: u Redistribution of welfare from the victim to the perpetrator u Opportunity cost or waste of resources for defense

6. SERIOUSNESS SURVEY RATE THE SERIOUSNESS OF EACH OF THE FOLLOWING BEHAVIORS ON A SCALE FROM ZERO( LEAST SERIOUS) TO TEN( MOST SERIOUS): 1. HOMICIDE___ 2. MASS POISONING ( e.g. TYLENOL)___ 3. FORCIBLE RAPE___ 4. ARSON: SET FIRE TO A GARAGE___ 5. SELLING HEROIN___ 6. AUTO THEFT___ 7. EMBEZZLEMENT OF $1,000___ 8. PROSTITUTE IN A HOUSE OF PROSTITUTION___ 9. POSSESSION OF MARIJUANA___ 10. SNIFFING GLUE___

7. Llad Phillips7 A Theme for this Course n Criminal Justice System is in crisis. u Courts have told Governor Schwarzenegger to find housing for prisoners or release them early u City and County jails are overflowing and a revolving door policy is in effect. Repeat offenders clog the system u Not enough judges and prosecutors

8. Llad Phillips8

9. 9 We have met the enemy and he is us

10. Llad Phillips10

11. Llad Phillips11 2006

12. Llad Phillips12

13. Llad Phillips13 It Has Not Always Been This Way n The Criminal Justice System had been relatively stable in the decade after World War II n What happened? That is the story of this course. n We will review the history of criminal justice in the 60 years since WW II. n We will suggest policies that will help turn things around now. In brief, what is needed is triage, i.e. to use scarce resources that will improve public safety the most.

14. Llad Phillips14 Social Welfare The Impact of Crime on Society

15. Llad Phillips15 Questions about crime n Is crime a real problem or a media induced problem? n Is crime an economic problem? n Are we getting our money’s worth for the dollars we spend on police, jails, and prisons?

16. Llad Phillips16 Taking Crimes n Robbery n Burglary n Auto Theft n Larceny

17. Llad Phillips17 How is Crime Measured n Victimization Surveys of Households u U S Dept of Justice, Bureau of Justice Statistics, Criminal Victimization n Citizen (Victim) Reports to Police u U S Dept of Justice, FBI, Uniform Crime Reports

18. Sourcebook of Criminal Justice Statistics, http://www.albany.edu/ sourcebook http://www.fbi.gov/homepage.htm Uniform Crime Reports

19. Llad Phillips19 Measures of Crime: Offense Rates n Thefts per 1000 registrations(FBI) = registrations per household * thefts per 1000 households(NCVS) u if registrations per household were growing in the 90’s then thefts per 1000 registrations would not fall as fast as thefts per 1000 households

20. Llad Phillips20 3000 2000 1000 Crime in California, 2005

21. Llad Phillips21 Trends In Crime in California Source: Crime and Delinquency in California, 2002 http://caag.state.ca.us/

22. Llad Phillips22 Source: http://caag.state.ca.us/

23. Llad Phillips23

24. Llad Phillips24 Violent Crime Mix, CA ‘03

25. Llad Phillips25 Homicide by Weapon, CA ‘03

26. Llad Phillips26

27. Llad Phillips27

28. Llad Phillips28 California Crime Mix

29. Llad Phillips29 California Crime Index: Property Crimes

30. Llad Phillips30 California: Trend in Robberies Per Capita in 90’s

31. Llad Phillips31 Types of Robberies in California, 1998

32. Llad Phillips32 California: Armed Robberies, 54% of Total, By Weapon

33. Llad Phillips33

34. Llad Phillips34 Sourcebook of Criminal Justice Statistics: http://www.albany.edu/sourcebook/ Uniform Crime Reports, Crime in the United States, http://www.fbi.gov/ucr/03cius.htm Bureau of Justice Statistics: http://www.ojp.usdoj.gov/bjs/http://www.ojp.usdoj.gov/bjs/ Crime in California, http://caag.state.ca.us/cjsc/pubs.htmhttp://caag.state.ca.us/cjsc/pubs.htm California Department of Corrections, http://www.corr.ca.gov/http://www.corr.ca.gov/ Sources of Criminal Justice Information On the Internet

35. Llad Phillips35 Two Perspectives On Crime n No Problem n It’s Bad

36. Llad Phillips36 Crime as Income Redistribution n The Robin Hood Myth u Take from the rich and give to the poor n The impact on social welfare u depends on your views or values F socialist versus a capitalist

39. Llad Phillips39 Crime as a dead weight loss n Loss of resouces spent on defense u protection of homes u protection of cars u protection of bicycles n Resources spent on defense u could be spent on goods and services F in the absence of crime n The impact on social welfare u Unambiguously bad

40. Llad Phillips40 What is the nature of crime? n Income redistribution? n or dead-weight loss?

41. Llad Phillips41 Economists Assume You Know What You Like n Lingo: economists call these consumer tastes or consumer preferences

42. Victim’s Income Thief’s Income

43. Victim’s Income Thief’s Income Thief’s Preferences 1. More is better, greedy 2. Indifferent to victim High Medium Low

44. Llad Phillips44 Economists Assume You Can make Comparisons n For example: the thief can compare a high level of his income and a low level of the victim’s income with a high level of his income and a high level of the victim’s income u in the case just illustrated, the thief values these the same since his income stays the same F the thief does not care whether the victim’s income is high or low, i.e. he is indifferent

45. Victim’s Income Thief’s Income Victim’s Preferences 1. more is better, greedy 2. indifferent to the thief lowmediumhigh

46. Victim’s Income Thief’s Income $6,000 Income Distribution

47. Victim’s Income $6,000 Income Distribution $12,000 Total or Social Income Line: Thief’s + Victim’s Income $12,000 Thief’s Income

48. Victim’s Income Thief’s Income $6,000 Income Distribution $12,000 Total or Social Income Line: Thief’s + Victim’s Income $12,000 Income Redistribution $9,000 $3,000

49. Llad Phillips49 Bad effects from taking crimes n Victim has less incentive to be productive n Victim has more incentive to spend time and money on defense n Analogous to war: guns vs. butter n What is society going to produce? u defense against crime? u or goods and services?

50. Victim’s Income Thief’s Income $6,000 Income Distribution $12,000 Total or Social Income Line: Thief’s + Victim’s Income $12,000 Income Redistribution $9,000 $3,000 $11,000 $1,000 social cost of defense $11,000

51. Crime Generation Offense Rate, Damages to Victims Fear Media Defense PrivatePublic

52. Llad Phillips52 Cost to Victims in US, 1993 Source: National Institute of Justice, Victim Costs and Consequences (1996)

53. Assaulter’s Income Victim’s Income Total or Social Income Motivation for Violence: Antagonism Assaulters Iso-preference Lines High Low

54. Llad Phillips54 Damages: US Violence, 1993 Source: National Institute of Justice, Victim Costs and Consequences (1996)

55. Llad Phillips55 Types of Crime n Motivation: self-interest, greed u Street Crimes: robbery, burglary, auto theft, larceny u White Collar: embezzlement, tax evasion, check fraud, telephone fraud u Status Offenses: runaway, truant, vagrant, beyond control of parents u Black Market: gambling, prostitution,drugs

56. Llad Phillips56 Types of Crime n Motivation: Hate, Rage u Street Crimes: homicide, aggravated assault, rape u Crimes Against Public Order: vandalism, terrorism u Hate Crimes F Columbine High F James Byrd: dragging death in Texas F Jewish Community Center in Granada Hills

57. Llad Phillips57 1750 Reported Hate Crimes in California: 1998 Source: Hate Crime in California, 1998

58. Llad Phillips58 About 2/3 of Hate Crimes are Violent

59. Llad Phillips59 Sources of Information p. of syllabus n US Data u Sourcebook of Criminal Justice Statistics F http://www.albany.edu/sourcebook/ u Bureau of Justice Statistics F http://www.ojp.usdoj.gov/bjs/welcome.html

60. Llad Phillips60 Summary n Crime is an economic problem u loss of resources(dead weight loss) from private and public defense n Damages to victims are 3 times as high for crimes against persons compared to crimes against property u Total for 7 FBI Index Crimes: $ 95 Billion

61. Assaulter’s Income Victim’s Income Total or Social Income Motivation for Violence: Antagonism Assaulters Iso-preference Lines High Low

62. Llad Phillips62 Split Personality Behaviors Jack Hirshleifer: “The Expanding Domain of Economics” Choice Work and no violence Work and brawl in bars (Economic Man with episodes of antagonism)

63. choice Work and no violence Work and brawl in bars expect $24,000/yr Apprehended: lose 1 month in court and jail, $22,000 0.1 0.9 Not apprehended $24,000 Expected income: 0.1*$22,000 + 0.9*$24,000 = $23,800

65. Llad Phillips65 Trends In Crime in California Source: Crime and Delinquency in California, 1998 http://caag.state.ca.us/