Who profits from crime? What are the ways to prevent crime in a business? Who does crime ultimately hurt?

Question

Could you please cite your sources, thank you!

Answer 1

First and foremost, crime has associated direct and indirect costs.  Direct costs are correctional institutions, police maintenance, medical expense borne by the victim and loss of earnings both by the perpetrators of crime and the victim. There are also intangible costs such as the pain inflicted on the victim. Crime actually reduces quality of life for the society. In addition, crime depreciates the value of properties, increases insurance cost and life expectancy.

There are economic benefits of reducing crime. It leads to government savings and decrease in government spending on direct and intangible costs.

Suggested Reading

Shenk, J. Frederick, and Patsy A. Klaus. 1984. “The Economic Cost of Crimes to Victims.” Washington: Bureau of Justice Statistics.

Thaler, Richard. 1978. “A note on the value of crime control: Evidence from the property market.” Journal of Urban Economics 5 (1): 137–145.