Crime is defined as "a breach of a rule or law for which a punishment may ultimately be prescribed by some governing authority or force" (Crime). What if crime did not exist? Who would fund public works? How many professions would not exist? Would the county require more funding from federal and state grants? Among other things, isn't it true that the derivative of crime is financial punishment? Is crime financially detrimental or beneficial to society? In this case study the authors will attempt to answer these questions. Using a sample, the authors will prove that the funds derived from crime offset the cost of crime. Furthermore, this report will provide the findings of a detailed analysis of the cost- benefit relationship, which includes the financial impact and benefit that crime imposes on society. In this report it will be determined that crime acts as an economic stimulant. Rather than focusing on the morality of crime, the authors will focus on the financial and economic impact of criminal activity.
The first step in the process was to select a sample to analyze. The sample size became important because it needed to be an accurate representation of the population. The authors chose Chester County, Pa because of its relevancy to West Chester University. Next, the authors gathered and compiled multiple financial statements. These included the Statements of Disbursements and Receipts from each district court along with the Chester County Budget. For the purpose of finding revenues and costs directly or indirectly related to crime, the data was extracted from these documents (Refer to Exhibit 1).
The formulated crime "income statement," constructed by the authors, proved their financial assumptions to be truthful and accurate. The finalized "income statement" stated that revenues and costs were nearly equal. Therefore, the cost of crime directly offsets the revenues derived from crime. Furthermore, Chester County encountered a realized gain of approximately two million dollars. Based on this analysis, it is fair to state that crime is slightly financially beneficial to Chester County. This idea concludes that no extra state or government funding would be necessary if crime did not exist. One must be advised that during the analytical process the authors were forced to make reasonable and fair estimations because of the lack of specific information and resources. In order to be as accurate as possible, the authors separated the costs into their respective categories based on civil and criminal cases reported by the magisterial district courts. (Refer to Exhibit 1, *1). The general health and well-being of a community is important to all residents of Chester County. A stable economy is essential for positive resident/county relationships. Crime stimulates the local economy in many ways. The economic benefits directly and indirectly related to crimes are countless. The authors decided to cite a few of these benefits.
First, in determining the effect crime has on public works, two aspects must be considered. One is that public works are funded by state and federal grants and not revenues received from criminals. Therefore, one would believe crime has no effect on public works. Or does it? Community service is another form of punishment that usually parallels financial reprimands. In fact non- violent criminals contribute their labor to the economy and other public betterment projects. This "free labor" ensures the completion of public works and the overall well being of the community. If a monetary amount can be allotted to community service, then the excess public work cost above community service revenue can only be funded by the state Secondly, there are many jobs that are directly related to the existence of crime. These professions most commonly range from lawyers, judges, and law enforcement/ probation/ parole officers, to prison security and corrections officers. Most of these local municipality jobs provide decent salaries and life long employee benefits to their respective employees. The average salaries of uniformed police officers range from forty to sixty thousand dollars annually, not including bonuses and overtime (Police Patrol Officer). Lawyers who practice law for more than four years on average make ninety thousand dollars, forcing them into a higher tax bracket (Salary Survey). Without crime high paying jobs would move toward extinction. Therefore, the county would receive less tax payments. Most lawyers are not collecting salaries from the local government, yet they make a decent living. With no more crime, lawyers, judges and law enforcement officers may still exist for civil matters, but not at their current capacity.
Other major professions that would be affected by the elimination of crime are the U.S. Armed Forces. Many Marines, Army, Air Force and Navy personnel reside in Chester County, including one of the authors, Marine Corporal Cianci. In fact, there is an Army National Guard base located in the center of West Chester, Pa. Without crime there would be a decline in the capacity of the armed forces. The loss or decrease of these crime dependent jobs would damage the local economy. The education system is another entity that is affected by crime. Chester county colleges such as West Chester University, Penn State Great Valley, and Immaculata University are well known for their criminal justice programs. Without crime, classrooms would be empty and teachers would be unemployed. Universities would be forced to downsize. The criminal justice curriculum would cease to produce revenues. Universities that base their curriculum strictly on law would be disseminated. Finally, the reader must consider how manufacturing plants affect the local economy. Law enforcement officers drive specifically manufactured vehicles that aid their crime fighting abilities and even make it possible. These vehicles are equipped with lights, sirens, and custom made seats. Ford, General Motors, and Chrysler are the three major U.S. car manufactures responsible for law enforcement vehicle assembly (Police Cars). If crime were to be eliminated the manufacturing segment of the economy would be tarnished. Decreased manufacturing would lead to a decrease in the Gross Domestic Product. The principles of economics determine that manufacturing facilities harbored in the United States provide a greater economic benefit than imported vehicles.
The authors' examinations determined beyond reasonable doubt that crime influences economic infrastructure. Without crime an intricate slice of the economic pie would be missing. The most important form of influence results from the cash flow that crime creates. The revenues pulled in by district courts, which is disbursed to the state and redistributed, benefits individual communities and the county as a whole. It is critical to reiterate the jobs and opportunities that stem from crime.
Now, consider the previously established definition of crime. This definition is an essential element in determining the "other" financial and economic benefits crime provides. At this point one may be thinking, "where is this going?"
Thus far, the authors have focused on the action of crime and the "law's" reaction. The "law" includes all legal and judicial persons of who associate themselves around the legality of criminality. What about crime that is financially punishable by private institutions? These privately owned institutions include college universities, banks, apartment complexes, residential communities, libraries, movie/game rental franchises, medical/dental establishments, and trash/recycling entities. The privately owned establishments are the governing force. Therefore the crimes, not punishable by the court of law, are breaches of rules consequently resulting in fines and fees. These fines and fees are collected for cancellation charges, late returns, late payments, "no shows," and bank overdrafts. Furthermore, these revenues are cost free. They could be characterized as pure profit without expense. In some cases they even reduce cost.
In the case of late fees the governing force is the college university. Yes, the university is state funded, but the tuition late fee payment benefits the school. Does all of this not fuel the economy? Finally the authors will examine the privately owned drug and alcohol clinics and classes that one must take to avoid a conviction and escape sentencing. These establishments including COAD (Chester County Council on Addictive Diseases), located in Exton, Pa, are individual entities, separate from the state, and do not include their revenues in the Chester County budgets. For example, COAD charges an individual arrested for driving under the influence approximately three hundred dollars for enrollment in local government mandated classes. The compilation of such money stimulates the local economy and influences a greater enhancement of the Chester County community relationship.
In conclusion it would be vindictive to assume that crime is strictly detrimental with regards Chester County's financial stability and economic infrastructure. In order to tie everything together one must imagine the big picture. The cash flow cycle responsible to crime has a deep impact on the local economy. Does crime pay? Yes crime pays for itself, and also provides an economic benefit to Chester County and its subsidiaries.
(Exhibit 1) Chester County, Pennsylvania, 2006-Revenues from crime received by law enforcement and court authority $51,026,376. Cost that would be eliminated without crime $56,328,802. Gross income equals $2,309,780.
Data was retrieved from the 2006 Chester County Budget. The cost ratio's were determined based on the stated Chester County civil/criminal ratio which equaled: 12% civil and 88% criminal. There was not enough information or resources to separate fixed and variable costs into their respective components.
