Poverty, Income Inequality, and Community Crime Rates - Research Paper Example

Poverty, Income Inequality, and Community Crime Rates Income inequality in the United s has been on the rise despite decades of economic stability. Until the first term of President Obama, the United States was recovering from a broad recession that was considered the longest-lasting economic downturn since World War II. The state of the economy has sparked debate concerning the correlation between community crime rates and economic factors. This paper examines this important connection with a specific focus on the positive correlation between relative and absolute poverty and rates of violent crime and burglary in the U.S., and compares the Gini coefficient and indicators of poverty, such as unemployment and income distribution, in the areas of concern. Poverty, Income Inequality, and Community Crime Rates Increased rates of violent crime and burglary in the United States have raised questions about their association with the aggregate economic condition. Rising crime rates during the current time of economic uncertainty have exacerbated an already difficult situation for societies across the United States. In the early 1970s and late 1980s, a range of important literature reviews failed to arrive at a clear consensus regarding the association between income inequality in various states and violent crime (Clark, 2014). The majority of researchers chose to focus on the link between crime and selected social aspects, while others examined the impact of the rate of inflation. The U.S. Congress has also expressed concern over this issue and directed funding toward a number of federal programs that provide support to local and state law enforcement agencies. This shows clearly the impact of income on crime (Gilbert, 2008). Likewise, the United Nations Global Pulse initiative cautions that world leaders must closely monitor indications of rising social tension and crime in their countries in the context of negative economic situations, and particularly vulnerable populations experiencing high levels of inequality (DeNavas-Walt et al., 2010). This assertion relies on the premise that offenders and victims of crime are vulnerable groups that have a likelihood of increasing in size during tough economic conditions, especially in areas with poor income distribution. In times of economic crisis, large numbers of citizens may undergo severe, or even sudden, income reductions (Clark, 2014). In regions where absolute and relative poverty manifest, increased crime rates are the result of negative or decreased economic empowerment, income inequality, and widespread rates of unemployment. Indeed, over the long term, these conditions may cause an increase in the proportion of citizens who identify unlawful activities as solutions to their problems. Whilst this may seem like a simple explanation for stressful situations, it must be noted that property crime is at the root of many violent crimes. Individuals in absolute or relative poverty may become increasingly aggressive and intolerant, particularly toward their families and loved ones. Violence against outsiders may also increase in situations where individuals lack clear future prospects. Understanding the context of crime thus becomes very important. The Gini coefficient offers the opportunity for important insights into how various states in the U.S. compare with respect to income inequality. The Gini Coefficient of the United States The Gini coefficient indicates the extent to which income distribution or consumption expenditure among households or individuals deviates from perfectly equal distribution within an economy (DeNavas-Walt et al., 2010) The more equal a country’s income distribution is, the lower the country’s Gini coefficient. With more attention currently being paid to economic inequality in the U.S., it is important to look at how the United States compares to other nations. The data of the Organization for Economic Cooperation and Development (December, 2011) indicate that the U.S. has one of the most unequal income distributions among developed countries. This could go some way to explaining the reason the crime rate is trending upwards compared to developed nations like the UK. The United States Gini coefficient stands at 0.469, as reported by the World Bank) (Gilbert, 2008) Ranking of States by the Gini Coefficient In 2010, the U.S. Census Bureau conducted the American Community Survey, which tabulated all income categories, to provide a clear insight into the concept of income inequality in the United States. Utah (0.419) and Alaska (0.422) showed the flattest income distributions. The District of Columbia (0.532) was positioned on the lower side of the table with New York State (0.499) following closely, thus reflecting the largest income disparities among income earners (DeNavas-Walt et al., 2010). Income inequality among U.S. states has been on the rise since the 1980s after many decades of stability. This implies that the share of the country’s income earned by individuals with higher incomes has increased over the years. The same trend is clear in both Utah and the District of Columbia, with income measured both before and after taxes for all households. Measured for working-age individuals, income inequality was comparatively high (as opposed to moderate) in these states while the redistribution level was moderate (as opposed to low). These comparisons among the states at the top and the bottom of the Gini coefficient table indicate Americans’ unique levels of income inequality. Income Inequality vs. Crime Rates among U.S. States Although income inequality and poverty among U.S. states cannot be singled out as the only factors that cause crime, there is an evident correlation between the rates of crime and income inequality. The more even a country’s distribution of income, the lower the country’s Gini index (Gilbert, 2008). Some citizens, particularly the youth, in states that have high levels of income inequality are known to engage in violent crimes to make a living. According to recent reports released by the Federal Bureau of Investigation (FBI), crime is declining in the United States. The FBI estimates that 1,173,156 violent crimes were committed across the U.S. in 2013, pointing to a 4.4% decrease in the number of crimes reported in 2012. Nevertheless, there is a correlation between the crime rates and the income inequality rates. States considered the most unequal in terms of income distribution report the highest crime rates (Gilbert, 2008). Insight, Measurement, and Understanding of Societal Crime According to criminal law, crimes are a body of state and federal rules that forbid behaviors that are deemed harmful to society at large. If an individual engages in such conduct, he or she may be guilty of a given crime and eventually prosecuted in a criminal court. In today’s American society, criminal trials and criminal conduct are highly publicized in the media, particularly in areas where individuals are from low- to middle-income groups. Inequality with respect to income distribution thus plays a major role in motivating crime (Gilbert, 2008). States where there is a black majority reportedly have high crime rates (DeNavas-Walt et al., 2010). Similarly, many intelligence reports have indicated that the number of black people in correctional facilities has been on the rise for decades. Moreover, the black population is in the majority in states that have poor income distribution. In these states, wealth is in the hands of a few. In essence, where there are high rates of unemployment and income inequality, there is also increased criminal activity. Furthermore, in states where the levels of social discrimination are high, opportunities for obtaining jobs among marginalized groups are not very strong. Studies have also indicated that lower education can lead to greater levels of criminal activity, which vary from drug-related offenses to property crime and “casual” theft. “Crime” is therefore not subject to one statistical measure. Invariably, approaches to the measurement of societal crime have concentrated on single, well-defined crime events, such as theft, burglary, and rape. These types of crimes are clearly evident in many areas that have been singled out to have income distribution disparities. Various data from the FBI and other security agencies have indicated the same. Such data are derived from both or either official population-based crime victimization surveys or police-recorded statistics of crime. Nevertheless, crime is very dynamic, and perpetrators continuously change the manner in which their crimes are perpetrated. The Impact of Inequality on Crime Rates Many recent studies on U.S. crime rates have tried to analyze how inequality is characterized in the various states, and it has been found that heterogeneous populations may go a long way in influencing state crime rate Gilbert, 2008).  It is worth noting that among the economic challenges facing states today, inequality, even within the simple context of a group or a region, has been singled out as a major cause of crime (Gilbert, 2008). To understand local dynamics and economic inequalities, it is likewise important to take into account that marginalized groups stay within single neighborhoods or regions. Various reports by the FBI and other security agencies have indicated that, depending on the location of the victims, people within marginalized groups have a high probability of clashing against others or committing crimes. Critical analysis has revealed that, when inequalities in a region are high, crime is not isolated to certain communities; it takes place both between and within different population groups (Gilbert, 2008). The more heterogeneity, the more jealousy, and the more misunderstandings, the greater the crime levels in a given location. It is in public domain that poverty and crime have a rather “intimate” relationship. Likewise, both the World Bank and the United Nations rank increased crime rates in the United States high on the list of challenges that many states are facing, particularly those states where there are high rates of inequality (Gilbert, 2008). States that are attempting to deal with poverty normally have to face concerns regarding crime as they try to develop their economies. Understanding the impact of inequality and mixed populations is crucial to understanding increasing levels of crimes, particularly in states perceived to have high levels of inequality. Indeed, crime prevents many businesses from flourishing by creating instability at both micro- and macroeconomic levels. This is the situation in markets of all sizes, whether national or regional. The impact of inequality and mixed populations on an area also helps in understanding why the blame for crime is leveled against major international organizations operating in some U.S. states (Kelly, 2000). These international organizations blame the state leadership for failing to address the challenge of inequality among its citizens, which has in turn led to the massive corruption witnessed in some states. In the long run, crime has this ability to generate vicious cycles of unemployment and instability. In societies where there is high income inequality, poverty and crime merge leaving individuals with just two options: to either indulge in various criminal activities or try to obtain legal—albeit quite limited—income sources, if any exist at all. From a theoretical viewpoint, poor economic conditions may influence not only violent crime, but also property crime. Indeed, there are various categories of crime, including robbery, intentional homicide, and motor vehicle theft, among others. A possible relationship between economic conditions and categories of crime can occur over various timescales and geographical units (Clark, 2014). Another common aspect in understanding how income inequality affects the crime rate is the unemployment rate. The rate of unemployment is one of the most commonly referenced economic indicators when discussing the potential effects of the economy on the crime rate. Unemployment occurs when individuals lack work despite looking for jobs, a situation often brought about by the prevailing economic situation. The rate of unemployment is a measure of the prevalence of unemployment and is the percentage obtained by dividing the number of unemployed persons by all the individuals presently in the labor force (Gilbert, 2008). Policy makers and scholars use the rate of unemployment as a proxy for the strength of an economy. Primarily from the 1980s, studies in the United States pointed more and more at the relationship between rates of unemployment and various crimes. Other correlations pertaining to income levels, the quality of neighborhoods, time spent at school, and education levels were simultaneously revealed. However, all indicators pointed to the fact that economic cycles, specifically employment trends, affect variations in violent and property crimes. Government’s Attempts to Lower Crime The government has taken various steps in an attempt to lower the crime rate in regions with high income inequality. Appropriate Work and Pay The government is trying to create an environment that ensures people have work and that their pay is sufficient to ensure that workers and their families can meet their basic needs, avoid poverty, and save for the future, particularly in regions where there is a high prevalence of income inequality. The government thus has a goal of reducing the levels of income inequality that are leading to increased crime rates by providing equal opportunities for all its citizens. The government through the congress is pushing for plans to raise the minimum wage so as to ensure better living standards for a significant group. This in the long run will result in adults who have opportunities to find work, move up in the workforce, have better living standards and live in secure neighborhoods (Bateman, 2008). Economic Security Through the implementation of various policies, the government is striving to ensure that Americans do not fall into absolute poverty. A variety of economic stimulus programs among the urban poor have been put in place to help distribute income. Such government programs help individuals who cannot find work or secure the work they desire and thus lower their probability of engaging in criminal activities. Wealth Creation Government policies ensure that all Americans, irrespective of their backgrounds, have the opportunity to build assets that allow them to stay afloat financially during periods of economic volatility or flux, as well as to have the resources that are essential for upward mobility and advancement. Trade Policies The U.S. government, through State agencies, previously tried to negotiate international trade agreements behind closed doors. In such situations, only corporate lobbyists and bureaucrats were present. These old-fashioned trade agreements were basically undemocratic and laid the way for corporate gains, denying workers the appropriate benefits. These agreements excluded many individuals from the job market, thus leading to increased crime. The new, transparent foreign trade policy is open and democratic, and government is more accountable to its citizens. Recommendations Increase the Minimum Wage At $5.15, the minimum wage for workers is at its lowest level in a long time. The minimum wage was once 50% of the average worker’s wage but is currently 30% of that wage. This paper recommends that Congress restore the minimum wage for Americans to 50% of the average wage. Doing so would help approximately five million poor workers and close to 10 million low-income workers (Gilbert, 2008), and in the long run, would assist in lowering the crime rate. This is in line with the assumption that the desperate economic situation in some U.S. states and concomitant increased rates of unemployment and income inequality raise the potential for crime (Freeman, 1996). Employee Free Choice Act The Employee Free Choice Act is essential in helping to lower crime rates in low-income neighborhoods. The Act requires employers in the affected states to recognize unions after workers have authorized their representation in a union. It also creates stronger penalties for the violation of the rights of employees. Increased and effective union representation brought about through the Act may lead to better job opportunities and thus reduce poverty among American workers. Expansion of Child Tax Credit and Earned Income Tax Credit As an earnings boost for low-income workers, Earned Income Tax Credit (EITC) raises income levels and assists families in building assets. Due to the fact that there is a correlation between poverty and crime, such plans not only provide a short-term solution, but a potential long-term answer to lowering the crime rate. Child Tax Credit, if implemented, would allocate a tax credit of close to $1,000 to people in areas of high income inequality who have a child; however, it provides no assistance to the poorest families. The paper recommends expanding such help to poor working families (Solomon, 2012). Furthermore, ensuring that the Child Tax Credit is available to most low- and moderate-income neighborhoods where crime is more prevalent would be beneficial. Doing this would move approximately five million Americans out of poverty and also lower the crime rate. Equitable Growth Today, close to eight million Americans reside in neighborhoods where approximately 40% of residents are considered poor (Gilbert, 2008). This paper recommends that our nation strive to end economic segregation and concentrated poverty, and support state equity and inner-state revitalization. Furthermore, over the next seven years, the federal government—through state government funding—should make available two million new opportunity vouchers focused on assisting individuals who live in opportunity-rich regions. For instance, new affordable housing should be made available to groups with opportunities for employment or for the gentrification of American neighborhoods. The housing policies may be part of a wider effort to follow equitable development goals in combination with state and local strategies, such as efforts to improve schools, enhance neighborhood amenities, and ensure physical security. Over the long term, these steps will ensure lower levels of crime than those currently experienced in poor neighborhoods (Solomon, 2012). Conclusion There is considerable correlation between economic conditions and the levels of crime in different region. In recent decades, the United States has witnessed significant expansion in the size of its urban areas and economic prosperity, but this is not reflected in the distribution of income among its citizens. The many challenges facing people in modern society influence their tendency to commit criminal acts. The anger these challenges generate can lead to individuals focusing on new approaches to solve their problems. Individuals living in vulnerable neighborhoods generally have a high probability of being the victims or perpetrators of crime. For these individuals, increased motivation to engage in crime is seen as an alternative to ever increasing unemployment. The Gini coefficient provides an indication of how various states compare in terms of income distribution, with states where income is poorly distributed tending to experience high levels of crime. Poor neighborhoods comprise a collection of individuals and cultures striving to accomplish the common objective of staying above the poverty line. In this regard, the various recommendations that this paper proposes are geared toward reducing income inequality, a metric that correlates strongly with the levels of crime in these regions. References Top of Form Bateman, T. (2008). Target practice: Sanction detection and the criminalisation of children. Criminal Justice Matters, 73(1): 2–4. Clark, T. (2014). Hard times: The divisive toll of the economic slump. London, UK: Yale University Press. Freeman, R. (1996). Why do so many young American men commit crimes and what might we do about it? Journal of Economic Perspectives, 10(1): 25–42. Top of Form Gilbert, G. (2008). Rich and poor in America: A reference handbook. Santa Barbara, CA: ABC-CLIO. Bottom of Form Kelly, M. (2000). Inequality and crime. Review of Economics and Statistics, 82(4): 530–539. Solomon, L. D. (2012). Cycles of poverty and crime in Americas inner cities. New Brunswick, NJ: Transaction. DeNavas-Walt, Carmen, Bernadette D. Proctor, and Jessica C. Smith. (2010). Income, Poverty, and Health Insurance Coverage in the United States: 2009. U.S. Census Bureau Current Population Reports. "An Overview of Growing Income Inequalities in OECD Countries: Main Findings”. (December 2011). Divided We Stand: Why Inequality Keeps Growing, OECD Publishing. Bottom of Form Read More