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Ten Economic Facts about Crime and Incarceration in the United States

Ten Economic Facts about Crime and Incarceration in the United States

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by Melissa S. Kearney and Benjamin H. Harris

This Hamilton Project policy memo provides ten economic facts highlighting recent trends in crime and incarceration in the United States. Specifically, it explores the characteristics of criminal offenders and victims; the historically unprecedented level of incarceration in the United States; and evidence on both the fiscal and social implications of current policy on taxpayers and those imprisoned.
by Melissa S. Kearney and Benjamin H. Harris

This Hamilton Project policy memo provides ten economic facts highlighting recent trends in crime and incarceration in the United States. Specifically, it explores the characteristics of criminal offenders and victims; the historically unprecedented level of incarceration in the United States; and evidence on both the fiscal and social implications of current policy on taxpayers and those imprisoned.

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Published by: Brookings Institution on May 05, 2014
Copyright:Traditional Copyright: All rights reserved

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Melissa S. Kearney, Benjamin H. Harris, Elisa Jácome, and Lucie Parker
POLICY MEMO |
MAY 2014
Ten Economic Facts about Crime and Incarceration in the United States
WWW.HAMILTONPROJECT.ORG
 
 ACKNOWLEDGEMENTS
The Hamilton Project is grateful to Karen Anderson, E. Ann Carson, David Dreyer, Jens Ludwig, Meeghan Prunty, Steven Raphael, and Michael Stoll for innumerable insightful comments and discussions. It is also grateful to Chanel Dority, Brian Goggin, Laura Howell, Peggah Khorrami, and Joseph Sullivan.
MISSION STATEMENT
The Hamilton Project seeks to advance America’s promise of opportunity, prosperity, and growth.We believe that today’s increasingly competitive global economy demands public policy ideas commensurate with the challenges of the 21st Century. The Project’s economic strategy reflects a  judgment that long-term prosperity is best achieved by fostering economic growth and broad participation in that growth, by enhancing individual economic security, and by embracing a role for effective government in making needed public investments. Our strategy calls for combining public investment, a secure social safety net, and fiscal discipline. In that framework, the Project puts forward innovative proposals from leading economic thinkers — based on credible evidence and experience, not ideology or doctrine — to introduce new and effective policy options into the national debate.The Project is named after Alexander Hamilton, the nation’s first Treasury Secretary, who laid the foundation for the modern  American economy. Hamilton stood for sound fiscal policy, believed that broad-based opportunity for advancement would drive American economic growth, and recognized that “prudent aids and encouragements on the part of government” are necessary to enhance and guide market forces. The guiding principles of the Project remain consistent with these views.
 
The Hamilton Project • Brookings 1
Ten Economic Facts about Crime and Incarceration in the United States
Introduction
Crime and high rates of incarceration
 impose tremendous costs on society, with lasting negative effects on individuals, amilies, and communities. Rates o crime in the United States have been alling steadily, but still constitute a serious economic and social challenge. At the same time, the incarceration rate in the United States is so high—more than 700 out o every 100,000 people are incarcerated—that both crime scholars and policymakers alike question whether, or nonviolent criminals in particular, the social costs o incarceration exceed the social benefits.While there is significant ocus on America’s incarceration policies, it is important to consider that crime continues to be a concern or policymakers, particularly at the state and local levels. Public spending on fighting crime—including the costs o incarceration, policing, and judicial and legal services—as well as private spending by households and businesses is substantial. Tere are also tremendous costs to the victims o crime, such as medical costs, lost earnings, and an overall loss in quality o lie. Crime also stymies economic growth. For example, exposure to violence can inhibit effective schooling and other developmental outcomes (Burdick-Will 2013; Sharkey et al. 2012). Crime can induce citizens to migrate; economists estimate that each nonatal violent crime reduces a city’s population by approximately one person, and each homicide reduces a city’s population by seventy persons (Cullen and Levitt 1999; Ludwig and Cook 2000). o the extent that migration diminishes a locality’s tax and consumer base, departures threaten a city’s ability to effectively educate children, provide social services, and maintain a vibrant economy.Te good news is that crime rates in the United States have been alling steadily since the 1990s, reversing an upward trend rom the 1960s through the 1980s. Tere does not appear to be a consensus among scholars about how to account or the overall sharp decline, but contributing actors may include increased policing, rising incarceration rates, and the waning o the crack epidemic that was prevalent in the 1980s and early 1990s.Despite the ongoing decline in crime, the incarceration rate in the United States remains at a historically unprecedented level. Tis high incarceration rate can have proound effects on society; research has shown that incarceration may impede employment and marriage prospects among ormer inmates, increase poverty depth and behavioral problems among their children, and ampliy the spread o communicable diseases among
Melissa S. Kearney, Benjamin H. Harris, Elisa Jácome, and Lucie Parker

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