Tania Gole, Grade 12
UWCSEA Singapore (East)
Economics and the criminal justice system are intrinsically connected. Criminal behaviour is complex and puts a heavy burden on the entire justice system's entire infrastructure, including but not limited to jails, courts, judiciary, the police, reform frameworks, and economic policy.
The economic perspective of the whole criminal justice system, in summary, is to maximize safety, minimize criminal activity, and reduce direct and indirect costs to stakeholders. The economics included in this industry are seen through the comparison of societal benefits, opportunity cost within government expenditure, and a decrease in the overall labor participation rate. Furthermore, economics is concerned with the rebuilding of communities, improving the gross domestic product of a country's economy, and the chance of specialization through the provision of training and education. All these issues that fall into the section of the criminal justice system.
Currently, the US has the highest incarceration rates and prison population in the World. Criminal recidivism reduces annual GDP by $65 billion a year. The surplus of individuals being convicted from crimes has caused an increase in the amount of money the government spends on the crime system. This issue brings about the idea of opportunity cost, which is the next best alternative foregone when a decision is made. Currently, the USA's unemployment rate is 3.9% after a surge of jobs in the last two years, and their labor force participation rate stood at 63.3% as of October. Imagine the rise in participation if the government put their spending into providing education and training to those in jail to make re-entry into the labor force smoother. Increasing labor force participation is vital for an increase in economic growth, causing many benefits for the different stakeholders involved. If education and training are provided :
The way the Australian government deals with issues of crime in society is one that is quite unusual. Currently, in rural areas, many of the citizens are unemployed, leaving them idle. Without employment opportunities and sufficient provision of training and education, it is hard for individuals to re-enter the workforce. It is therefore highly likely that due to the lack of meaningful employment, many of these individuals may turn to commit crimes. To avoid this, the government provides the DOLE, which is a benefit paid by the state to the unemployed. Although it is a cost, it plays an important role as a deterrent for people to commit crimes and having a more significant expense load on the Australian justice system. The downside is that it causes a decrease in labor participation rates, a drop in the country's GDP, and poverty levels. Another problem of the DOLE is that it causes individuals to become reliant. Without any incentive to work, the government will continue to provide money. Those receiving these benefits can take advantage of this.
In summary, economics is heavily tied to the criminal justice system. Many countries have different measures and policies which they use. If governments moved their attention to providing rehabilitation and better entry into the labor force for those convicted of small crimes, it would significantly reduce costs. This will lead to a reduction in government expenditure and provide a better living for those coming out of jail. Additionally, as more people from the criminal system are rehabilitated and return to employment, the government will see some return on investment by means of taxation and the spending power that will contribute to the economy.
The economic perspective of the whole criminal justice system, in summary, is to maximize safety, minimize criminal activity, and reduce direct and indirect costs to stakeholders. The economics included in this industry are seen through the comparison of societal benefits, opportunity cost within government expenditure, and a decrease in the overall labor participation rate. Furthermore, economics is concerned with the rebuilding of communities, improving the gross domestic product of a country's economy, and the chance of specialization through the provision of training and education. All these issues that fall into the section of the criminal justice system.
Currently, the US has the highest incarceration rates and prison population in the World. Criminal recidivism reduces annual GDP by $65 billion a year. The surplus of individuals being convicted from crimes has caused an increase in the amount of money the government spends on the crime system. This issue brings about the idea of opportunity cost, which is the next best alternative foregone when a decision is made. Currently, the USA's unemployment rate is 3.9% after a surge of jobs in the last two years, and their labor force participation rate stood at 63.3% as of October. Imagine the rise in participation if the government put their spending into providing education and training to those in jail to make re-entry into the labor force smoother. Increasing labor force participation is vital for an increase in economic growth, causing many benefits for the different stakeholders involved. If education and training are provided :
- Firms will be able to hire more labor and increase their production to supply to more consumers
- Increase in economic growth - this is beneficial for the government
- An opportunity for those convicted of crimes to be able to earn money and increase their standard of living
The way the Australian government deals with issues of crime in society is one that is quite unusual. Currently, in rural areas, many of the citizens are unemployed, leaving them idle. Without employment opportunities and sufficient provision of training and education, it is hard for individuals to re-enter the workforce. It is therefore highly likely that due to the lack of meaningful employment, many of these individuals may turn to commit crimes. To avoid this, the government provides the DOLE, which is a benefit paid by the state to the unemployed. Although it is a cost, it plays an important role as a deterrent for people to commit crimes and having a more significant expense load on the Australian justice system. The downside is that it causes a decrease in labor participation rates, a drop in the country's GDP, and poverty levels. Another problem of the DOLE is that it causes individuals to become reliant. Without any incentive to work, the government will continue to provide money. Those receiving these benefits can take advantage of this.
In summary, economics is heavily tied to the criminal justice system. Many countries have different measures and policies which they use. If governments moved their attention to providing rehabilitation and better entry into the labor force for those convicted of small crimes, it would significantly reduce costs. This will lead to a reduction in government expenditure and provide a better living for those coming out of jail. Additionally, as more people from the criminal system are rehabilitated and return to employment, the government will see some return on investment by means of taxation and the spending power that will contribute to the economy.
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