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"Aw, people can come up with statistics to prove anything Kent. Forty percent of all people know that."
-
Homer J. Simpson
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Wow,
this is a breathtakingly ill-informed piece of lazy journalism, and
an outrageous abuse of statistics!
The
commenters on the site have already pointed out some of the flaws in your
argument, but there are other ways in which this is simply wrong.
For
anyone interested in a serious discussion of incarceration, I would
highly recommend David Cole's article from the New York Review of Books from a few years back (and which I previously blogged about here).
According
to Cole, “most of those imprisoned are
poor and uneducated, disproportionately drawn from the margins of
society” (referring to the US prison population).
The
US has by far the highest incarceration rate in the world. However,
somewhat inconveniently for your argument, Cole also points out that
up to 1975 the US incarceration rate had been
steady at about 100 per 100,000. Since then, the rate has ballooned
to 700 per 100,000. If putting the crooks behind bars is
really what prevents crime, it seems strange that such a massive
increase in the incarceration rate apparently had no preventative
effect on the 'crime waves' of the 1980s, to which you also make
reference.
Incidentally, it
is also slightly inconvenient for your argument that Russia, a
country that you refer to as having “a very high murder rate”,
also has the second highest incarceration rate in world. Huh.
But
of course all of these superficial correlations are meaningless
anyway (as you point out yourself!). What you are doing is taking two
trends that happen to be moving in the same direction (or in some cases
opposite directions), and assigning causation, in blatant disregard of
your own caveat about correlation not necessarily implying causation!
Your
country comparisons are also spurious. You simply can't compare crime rates and income
levels across countries without at least attempting to control
for some other relevant factors. Any applied economist worth their
salt would know this. Two such relevant factors, which you mention in
your article, are the rate of drug use (or perhaps more importantly
narcotics production) and demographics. Controlling for these might
lead to a very different picture of the relationship between income
and crime (or it may not, the point is we simply don't know, based on the evidence you present). In any case, it seems likely that relative poverty and
relative deprivation (i.e. within countries) would be more important
drivers of crime than aggregate national income levels.
It
is astonishing that you would make such sweeping assertions about
what does or does not cause crime on the basis of so little evidence,
and that the Irish Times would publish this piece seemingly without
having done even the most basic fact-checking. (On that point, it is
worth referring to Paul Krugman's recent article in which he outlines
the fact-checking process that each of his op-ed pieces goes through
before being published in the New York Times.)
You
have done a disservice to economics and statistics with this article
– as well as showing an almost total disregard for the other
social-sciences which have produced voluminous literatures on the
socio-economic causes of crime. I sincerely hope that the Irish Times
will give the opportunity to someone with some expertise in this area
to write a response to this article.
*****
This is an excellent article and you raise some very important points that every economist should be concerned about.
However, in the last section of the piece (titled "Consumption Spree") I think you take the argument a step too far. In particular, I have a problem with the line "Economic theory isn't up for grabs. Economic facts aren't a matter of choice." Here you are doing a disservice to economics by exaggerating its claims to scientific impartiality. No theory exists in a vacuum and empirical "facts" must be interpreted in order for them to have any meaning (this is true even for the "hard" sciences, but especially so for social science such as economics)
The preceding discussion on savings rates provides a perfect illustration of this. You take an existing theory (life cycle savings model) and use it to interpret some empirical facts (savings rates, tax incentives) resulting in an explanation of America's low savings rates. This is all perfectly valid. But it involves the selection of a model - based on a particular world view - and the interpretation of the empirical evidence through the prism of that model.
Your argument sounds convincing - and I have no doubt this is at least part of the explanation for low savings rates. But the reader - and certainly other economists - should be free to agree or disagree with your particular interpretation, and to offer alternatives. Indeed alternative explanations of low savings rates have been offered by people who start with a different model or world view and make a different interpretation of the available evidence.
This is how good science should work. It is always up for grabs.
*****