Is the low crime rate due to more generous welfare?
“When I’m in a downtown crowd I wonder if the jihad will catch up with me,” said a young American. I responded “When I was a kid in the 1970s you didn’t have to wonder if you’d be the victim of violence. You knew that if you went downtown after dark that you would be.”
What is responsible for the falling crime rate? I’ve seen various theories but am wondering if there is a simple explanation: welfare is a more attractive alternative for most people.
Let’s look at the old, old, days. There was no central government-provided welfare (though religious and social organizations ran various programs, as did some towns). Both men and women who couldn’t get jobs might find crime attractive, therefore. And in fact women were active as criminals throughout the 18th and 19th centuries in England (see Moll Flanders!).
Early welfare programs were designed primarily for women with children. Thus if a woman was able to produce or obtain a child, she could in many cases earn a better living from welfare than from crime. A 1988 change in federal law made it potentially more lucrative for a woman to collect child support from a one-night sexual encounter than to go to college and work (see “History of Divorce”). That left an American world in which it only men found it economically rational to be criminals.
SSDI was greatly expanded in the 1970s (see “Disability Policy and History”), thus making a lot more men eligible for welfare. The conditions of collecting welfare gradually improved for both men and women. The free government-provided house changed from an apartment in a squalid high-rise filled with other welfare collectors to an apartment in a “mixed income” building, potentially the same apartment that a person earning 4-5X the median wage would rent. A person relying on welfare might also find him or herself in a single-family suburban house (see “Vouchers Help Families Move Far From Public Housing” (NYT, July 7, 2015), for example, for how an adult who has obtained custody of minor children can get $1,840 per month to live in the better neighborhoods of Dallas), essentially living the American Dream.
If the “better welfare leads to less crime” theory is correct, why do we still have crime at all then? Perhaps some people are not well-informed regarding welfare options, e.g., how much more comfortably they could live if they moved to a different welfare jurisdiction (we surveyed college-educated Massachusetts residents and found that they typically underestimated the potential profits from child support by a factor of 5-10, for example). Perhaps some people are not good at handling the paperwork challenge of qualifying for all of the various programs (see this posting asking “Just how many government workers can a poor American support?”). Perhaps the answer is that, for young men who don’t have custody of minor children, the waiting list for a free house is so long that the benefit is rendered useless and the immediate cash benefits from welfare are not enough to outperform a life of crime.
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