Effect of Earnings Decline on Crime Levels

Effect of Earnings Decline on Crime Levels Module: Contemporary Issues in the UK Economy Use an appropriate supply and demand framework to explain how a decline in earnings from legitimate work would be expected to affect the level of crime. To what extent does evidence from the UK support this theoretical prediction? The idea that low earnings affect crime is not a new idea; Aristotle (350 B.C.) himself said â€Å"poverty is the parent of revolution and crime† (pg. 32). Since then, there has been much research in the field since policymakers require this information to create effective crime-reducing policies. In recent years, falling real wages has been a significant issue since the UK is in the longest period of pay stagnation since 1855 (The Economist, 25th Oct 2014). I will discuss the impact of falling wages on the crime rate by using an economic supply and demand framework and comparing my findings to real evidence from UK data. Both Becker (1968) and Freeman’s (1999) work make the assumption that criminals are rational economic agents and hence criminal activity can be modelled using a supply and demand framework in the same way one could a goods or services market. Economic theory states that the supply of crime depends on four components: potential earnings from committing a successful crime (Wc), probability of being caught (p), level of punishment (S) and wages earned from legitimate work (W). This can be shown in the following inequality: (1-p)U(Wc)-pU(S)>U(W) The left hand side represents the potential net benefit gained from committing the crime and the right hand side shows the utility of legitimate earnings. So the individual will commit a crime if the net benefits of committing the crime exceed the benefits of legitimate work. These factors which influence whether an individual decides to commit a crime or not can be aggregated to create the following function for Criminal Participation (CP): CP=f (Wc, P, S, W). The demand function of crime describes how the level of crime in society falls as individuals take increasing preventative measures (Cook, 1986) and therefore, the demand curve is downward sloping. However, the level of demand for committing crimes varies depending on the type of criminal activity undertaken. Freeman (1999) differentiates between â€Å"victimless† and â€Å"victims† crime suggesting that â€Å"victimless† crime carries obvious economic gain, e.g. dealing drugs, whereas â€Å"victims† crime has no obvious economic benefit e.g. violent crime. However, the downward sloping demand curve for â€Å"victims† crime is less intuitive so most work focusses on â€Å"victimless† crime. It is worth noting that one of the limitations of this supply and demand model in analysing crime rates is that it does not take into account non-economic incentives i.e. the feeling of doing wrong versus earning an honest living. Having discussed how to model crime using supply and demand analysis, I will now use these economic tools to illustrate a situation where wages are falling. If wages from legitimate work (W) fall, the supply curve will shift outwards since the opportunity cost of crime has fallen. Using the inequality previously discussed ((1-p) U(Wc)-pU(S)>U(W)), if legitimate earnings (W) fall, assuming ceteris paribus, the benefits of committing the crime are relatively higher. Hence more people will be willing to commit crimes. This is shown in Figure 1 as the shift from CP1 to CP2. Cantor and Land (1985) call this the motivation effect. As shown here, the outward shift of â€Å"supply† of crime (CP1 to CP2) results in an increase in the amount of crime committed (Q1 to Q2). However, there is also a fall in potential earnings from crime (Wc1 to Wc2); if wages fall, the value of consumer goods being bought is likely to fall so there are fewer valuable goods available to steal. This is the Opportunity Effect (Cantor and Land, 1985). So the fall in wages could actually reduce the crime level. It is difficult to gauge which effect, Opportunity or Motivation, is stronger. One factor which could affect this is whether low or high wages are falling. Machin and Meghir (2004) make this distinction by analysing the 25th wage percentile to capture lower skilled workers whose opportunity cost of committing is lower (Freeman, 1999). Machin and Meghir use data from England and Wales (1975-1996) and focus on vehicle and property crime as these are more likely to be driven by economic incentives than e.g. violent crimes. Figure 2 shows the relationship between the level of wage growth in an economy and the level of crime. The close proximity of the points on the graph to the regression line (calculated using a weighted least squares regression) shows a relatively strong negative correlation between the variables and the slope of the regression line gave a value of -1.580; hence, as the 25th percentile wage rises by 1%, the property crime rate is expected to fall by 1.580%. Machin and Meghir’s work supports the theoretical analysis that falling wages leads to higher crime rates for low paid workers. Therefore if low wages fall, the Motivation effect exceeds the Opportunity effect. We can also look at more recent wage and crime data from the UK to see if it supports the conclusion, that falling wages leads to higher crime rates, drawn from supply and demand analysis. As shown in Figure 3, there has been a downward trend in the real wage rate in the UK since the financial crash in 2007, real wage growth was around 10% but this has fallen to -9% by 2014. Using economic theory, it is evident that if real wages fall, then tax revenue earned by the government is likely to decrease through e.g. lower income tax revenue. Moreover, if people have lower earnings, government’s spending in transfer payments e.g. benefits is likely to rise. The situation of falling tax revenue and higher demand for public services has led to a worsening budget balance so the Coalition government adopted austerity measures. This has affected many areas of public sector spending, including the police force where there have been  £2.5bn in budget cuts since 2011, and an estimated 70% of these cuts have been in officer cuts (BBC News, 22nd July 2014). This leads to a fall in the probability of being caught (P) and severity of punishment (S), since severe punishments are typically more expensive. The effects on P and S are â€Å"second round† effects derived from falling wages. Using the CP function, one would expect that if P and S fall there is a rise in crime. However, national crime statistics demonstrate a reduction in the level of crime in the UK (figure 4): So it is evident that crime has been falling since around 1995 as shown by the Crime Survey for England and Wales (CSEW) data estimate. Since the financial crash, crime has fallen from around 10.5 million in 2008/2009 to 8.5 million in 2012/2013. This contradicts the conclusion made using supply/demand analysis that falling wages leads to higher crime rates. However, David Cameron argues that remaining policemen have been asked â€Å"to do more with less resources [and they] have performed magnificently (Gill, 2013). However, critics argue that there are other factors which have reduced crime statistics. Gill (2013) points towards technological advancements as a significant reason for a falling crime rates. Firstly, car manufacturers are able to include central locking systems which makes it more difficult for criminals to break in. Secondly, car break-ins are typically a â€Å"starter crime† leading onto more serious crimes such as drug dealing; if fewer people are getting involved in crime at this lower level then there will be less crime overall. Thirdly, Gill (2013) highlights the way crime is reported as being a problem since there has been growth in online and high tech crime, for example, online credit card fraud, which is not taken into account in the CSEW crime statistics. Therefore, the â€Å"second round† effects, that falling wages/tax revenue force governments to cut police funding results in more crime, may not be felt since technological advancements have resulted in less (reported) crime. That said, the Ministry of Justice (MoJ) made a statement (2010) explaining how it planned to stabilise the number of prisoners until 2014/2015 and after this it would look at reducing the number by 3000 fewer than the figure as of 19th November 2010 (85,393). So while austerity measures have been implemented by the government, the severity of punishments has yet to fall significantly; this may be another reason why the crime rate did not increase whilst wages have been falling. It will be interesting to see whether going forward now crime rates increase since the MoJ is aiming to reduce the number of prisoners. In conclusion, it is evident that a supply and demand framework to model the effect of falling wages on crime cannot fully explain the situation we are currently in. In all fairness, Machin and Meghir’s work did support these findings, however more recent wage and crime data has contradicted the expected outcome. Therefore, although using a supply and demand framework can explain the impact of falling wages on crime to an extent, other factors, such as technological developments, may also influence the crime rate and policymakers who are trying to tackle crime need to ensure these other factors are also taken into account. Bibliography Aristotle (350 B.C.E.) Politics. Translated by B. Jowett. 1999. Kitchener: Batoche Books. Becker, G. (1968) Crime and Punishment: An Economic Approach. Journal of Political Economy, 76 (2): 169-217. Becker, G. (1992) The Economic Way of Looking at Life. Nobel Prize [transcript], Wednesday 9th December, Available from: http://www.nobelprize.org/nobel_prizes/economic-sciences/laureates/1992/becker-lecture.pdf [Accessed 18th November 2014]. Blunt, C. (2010) Imprisonment for Public Protection. House of Commons Debate [transcript], Tuesday 23rd November, Available from: http://www.publications.parliament.uk/pa/cm201011/cmhansrd/cm101123/debtext/101123-0001.htm [Accessed on 20th November 2010]. Cantor, D. and Land, K. C. (1985) Unemployment and crime rates in the post-World War 2 United States: A Theoretical and Empirical Analysis. American Sociological Review, 50 (3): 317–332. Cook, P. J. (1986) The Demand and Supply of Criminal Opportunities. Crime and Justice, 7: 1-27. Crime in England and Wales: Quarterly Bulletin. The Office of National Statistics [online], 19th July 2012. Available from: http://www.ons.gov.uk/ons/dcp171778_273169.pdf [Accessed 16th November 2014]. Dolphin, T. (2014) Bleak figures show a relentless slide towards a low-pay Britain. The Observer [online], Sunday 19th October. Available from: http://www.theguardian.com/business/2014/oct/18/economy-bleak-british-workers-technology [Accessed 18th November 2014]. Ehrlich, I. (1996) Crime, Punishment and Market for Offenses. The Journal of Economic Perspectives, 10 (1): 43-67. Freeman, R. (1999) â€Å"The Economics of Crime.† In Ashenfelter, O. and Card, D. (ed.) Handbook of Labour Economics, 3. Amsterdam, Netherlands: North Holland Publishers. pp. 3530-3571. Gill, M. (2013) David Cameron is wrong: falling crime rates are not because of the magnificent police. New Statesman [online], Thursday 18th July. Available from: http://www.newstatesman.com/politics/2013/07/no-david-cameron-falling-crime-rates-are-not-because-magnificent-police [Accessed on: 17th November 2014]. Machin, S. and Meghir, C. (2004) Crime and Economic Incentives. The Journal of Human Resources, 49 (4): 958-979. Police forces in England and Wales ’rise to the cuts challenge’. BBC News [online], 22nd July 2014. Available from: http://www.bbc.co.uk/news/uk-28415123 [Accessed 18th November 2014]. Real Wages: What Recovery?. The Economist [online], 25th Oct 2014. Available from: http://www.economist.com/news/britain/21627665-workers-continue-feel-pinch-what-recovery [Accessed 18th November 2014].

John Locke Paper

Throughout the 17th century, John Locke presented society with his teachings and theories that clarified the order of natural law and fulfilled humanity’s divine purpose for living. It all began in 1647, as a young boy when he attended the prestigious Westminster School in London under the sponsorship of Alexander Popham. During his years at the Westminster School, he found the work of modern philosophers more interesting than the material being taught at the university.Much of Locke's influence and later work was characterized by opposition to authoritarianism, which focused on both the level of the individual person and on the level of institutions such as government and church. Locke wanted each of us to use reason to search after truth rather than simply accept the opinion of authorities or be subject to superstition. He wanted us to proportion go along with the proposition to the evidence for them. Locke came to the conclusion that there must be a balance and mutual under standing between individuality and social institutions where society will not feel suppressed under man made law and restrictions.John Locke believed that all knowledge comes from experience. Experience is composed of two parts: external and internal. External experiences are ideas of supposed external objects. These objects enter our minds through sensation. Examples of sensations would be hot, cold, red, yellow, hard, soft, sweet and bitter. Internal experiences are reflections that make us understand the operation on the objects of sensation. Examples of reflections are thinking, willing, believing, doubting, affirming, denying, and comparing.Once again Locke goes back to his foundation of principles by reaffirming that in order to achieve success and sensation there must be a working relationship between individual goals and the law of society. Sensation and reflection are called the two fountains of knowledge. All of our ideas we can naturally have or have so already come from these two experiences. Sensible qualities convey into the mind, and they produce most of the perceptions and most of the great sources of ideas we have.Sensation and reflection differ from each other because sensation is what happens outside the body, and reflection has to do what happens inside the body with our mind. Also reflection has to do with the ideas it affords being such only as the mind gets by reflecting on its own operations within itself, the mind takes over its own operations and the manner of them. Besides having sensible qualities one also contains primary and secondary qualities. Locke explains that these qualities are two kinds of properties that an object could have.Primary qualities contain solidity, figure, extension, motion and number. They are properties that are objective and independent on senses. On the other hand, secondary qualities consist of color, smell, taste, sound and touch. They are properties that are subjectively perceived. In Locke’s, An Essay Concerning Human Understanding, he states, â€Å"sensible qualities; which, whatever reality we by mistake attribute to them, are in truth nothing in the objects themselves, but powers to produce various sensations in us†¦Ã¢â‚¬  (John Locke, 77).In other words, secondary qualities are dependent on the primary qualities. According to Locke, ideas are anything that is â€Å"the immediate object of perception, thought, or understanding† (William Lawhead, 91). Locke states that sensation and reflection are classified as simple and complex ideas. Simple ideas are red, yellow, hard, soft, etc and for example, you touch an ice cube, your mind is telling you its cold and it’s hard, you learn that from experience. Locke believed that the mind cannot know an inexperienced idea or create a new simple idea.Although the mind cannot create simple ideas, it can process them into complex ideas. Complex ideas are made up of several simple ideas, such as beauty, gratitude, a man, an army, the universe. Complex ideas are also broken down into three parts: ideas of substance which is a constant collection of simple ideas, ideas of mode which is a combination of several ideas, which form a mode, like a triangle, last but not least ideas of relationship, which is a comparison of one idea to another.From experience it goes to sensation and reflection, and those are based on simple ideas and that’s all contained in the passive mind, after simple ideas it goes to complex ideas and that’s located in the active mind. Overall in Locke’s theory he uses epistemological dualism, which is the mind that consists of knowing and its ideas. He also states the object in the external world is known by ideas, and our ideas represent those objects. After researching about Locke’s theory of knowledge I would have to agree with what he has stated.Locke states that you go through an internal and external experience and I feel that today’s y outh do go through the motions of the internal and external experiences. As a result the youth are able to gain the knowledge from those experiences by allowing the mind to willingly accept these new ideas. For example, when I was younger I put my hand near a hot stove and from the heat irritating and pressuring my hand my mind told me it was a negative stimuli and it was essential to remove my hand from the stove and to keep that memory as a basic instinct.Society goes through experiences throughout life of internal and external and eventually gains knowledge through these experiences. John Locke also stated that the mind does all the knowing and its ideas are known. I agree with what he is saying because your mind is always working, it’s always active, we receive ideas internally through our mind and we receive ideas from the outside that goes into our mind. The balance is necessary between internal and external factors to keep society and individuals stable and yet progres sive to adapt to new changes that rise up.

Persuasive Essay Explained

Persuasive Essay Explained It's far less difficult to argue convincingly as soon as the topic matters to you. Qualities of a fantastic persuasive essay topic The topic needs to be specific. Begin with general subjects that you are conversant with then narrow down to a particular topic. Whichever topic you select, always don't forget the value of literature sources. When you want to speak on a specific topic it's tough to understand when to stop. At length, bear in mind that a huge portion of being effective in persuasion is the capacity to attract your audience's emotions. You always have to look at seeing your professor when you'll need any type of help in a class. It's sometimes simpler to persuade someone when you're passionate about a subject. It's not powerful or convincing to found your argument on easily refutable points. Each paragraph you should begin with a topic sentence. The thesis declaration may be put in the start or maybe the last end for the paragraph. A debatable subject provides the writer the opportunity to bring out several major points. It's imperative you take note of several points while writing a technical research paper. Our talented writers can deal with nearly every kind of writing assignment, together with Math and Physics troubles and a whole lot more. When you settle on the subject and pick the position on which you will base your essay, the remainder of the job can then begin. You still have to make an outstanding bit of writing. New Step by Step Roadmap for Persuasive Essay Persuasive writing can be challenging, particularly when you're made to face with a close-minded audience. Academic writers or essay writing providers allow it to be simple for students to find the things they need fast. The Cryptography is manner you're prepared to keep information secure. In an informative speech you're presenting information to an audience that's usually prepared to listen. Evidently, you ought not purposely choose a topic that will bore your audience. Quite simply, obtaining a focused topic is vital, but obtaining a specific audience is equally as important. Taking into account that lots of persuasive essays concern controversial topics, before writing, you can want to sit down and think of what your opinion on the topic actually is. In choosing your topic, it's frequently a good idea to start with a subject which you already have some familiarity with. It's extremely important to grasp the idea of recycling before we proceed to preparing all types of persuasive speeches on recycling. The significance of research in persuasive writing may not be overstated. Possessing excellent research abilities and selecting an excellent topic is important. The most common sort of speech given throughout the USA is the informative speech. There are not any steadfast rules that you will need to adhere to as you write. It's possible to discover a whole lot of persuasive essays in the realm of politics. Since you can see, several of the topics listed are new and deal with the recent issues happening in the World today. What is Actually Happening with Persuasive Essay Writing a college essay can arrive in various forms and styles based on your taste. So for a student to really receive a book from the library for the semester would be quite difficult if other students are attempting to do something similar. Many colleges pay athletes and supply them free education just due to their sports talents. There are many persuasive essay examples college students are able to make use of online. Now attempt to mix unique kinds of arguments to produce your paper lively and vibrant in style. Argumentative essays look at an idea or a problem and present each side when building a case for a single side particularly. Most academic essay top ics usually ask you to choose a side in an argument or maybe to defend a specific side against criticism. Useful advices An outline is a form of a plan, a structure of your paper, which you have to follow in order to create different essay connect to one another in a smooth and easy way. New Step by Step Roadmap for Persuasive Essay Exactly like in a written essay, you will need to choose what you want to explain or argue. It might be useful if you plan out or brainstorm your essay before you begin writing it. Otherwise a very good essay will receive a zero for plagiarism. Writing a superb persuasive essay is not a simple task, however, it's achievable. If you've ever taken an on-line class, you understand how different it can be from a standard face-to-face course. Unlike topics for middle school or higher school, great college topics are somewhat more challenging to discover. The custom is allowed in some states, but it's frowned upon and illegal in a lot more states. A good deal of new students do not don't forget that they might have to get all their books unlike in high school where they were provided. Picking a discussable issueA discussable issue is one which can be debated. Selecting a great topic for your essay is among the most crucial and frequently tricky parts for many students. Contraception ought to be banned for children.

The Impact Of Consumerism - 939 Words

According to Dictionary.com, consumerism is defined as â€Å"the concept that an ever-expanding consumption of goods is advantageous to the economy.† Basically, this definition boils down to people getting more people to buy more products is a good thing. However, things aren’t always as they seem. In order to get people to be interested in your product, there is lots of advertisement involved and this of course costs money. Unfortunately, with lots of advertisements, they may not tell the whole truth of a product, or they may target one specific age or race group. Getting consumers to buy products is a good thing, but the lengths people go at isnt. In order to get people to be interested in a product, it has to be something that they can see†¦show more content†¦Due to the larger amounts of products being made, there are more pollutants being emitted, more land is being used, and the harmful gases that is being released into our atmosphere helps to accelerate our climate change problem. In his book No Impact Man, Colin Beavan states, â€Å"we work out butts off so we can get the stuff, but the making of the stuff destroys the planet, which makes us more depressed,...† (Beavan, pg 142). In this quote, Beavan states how people keep on buying despite the negative effects it has on our environment. Another thing companies may do to get their products to sell, is to aim some of their products to a certain age and race group, Even though it may seem innocent, it is discriminatory and harmful. For example, it is seen in many commercials that cigarette companies ads are found in areas where the majority of the people in the neighborhood are black.It is uncertain who came up with the idea to put up a majority of posters in black majority neighborhoods, but it isn’t right and to many it is considered racist and discriminatory. Fast food companies have their advertisements appeal to young children especially, they advertise low price meals for people that are on the go, and are physically attractive to young children. The parents of the young kids are usually busy, and may notShow MoreRelatedTechnology And Consumerism And Its Impact On Consumerism1847 Words   |  8 Pagespopulation is connected to the Internet today [Internet World Stats, 2017]. The mass amounts of exposure t o technology, the World Wide Web, and e-commerce lead one to wonder what influence technology and social media have on consumerism and on a customer’s buying habits. 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