The reason why most people do not become thieves is because marginal cost is greater than marginal benefit. One of these costs is the feeling of guilt that many experience when committing an immoral action. Even if there was no other penalty for stealing, the cost of feeling guilty would outweigh the benefits for some people. Other costs include the cost of gathering resources in order to steal, such as purchasing supplies and equipment, as well as the opportunity cost caused by the income the thief would lose if he decided to steal instead of work.
Although these are effective deterrents, many more individuals in today's society would break the law if fines and imprisonment were not implemented as additional costs. The potential of being fined or imprisoned greatly increases a would-be thief's marginal cost, since most people highly value their personal freedom and realize that being in prison would increase the opportunity cost of working for a wage.
By viewing stealing and other property crimes from an economic lens, interesting trends that are otherwise hidden can be explained. One example is why widespread looting follows rioting, often perpetrated by people who would not steal from stores under normal circumstances, but do during riots where the marginal cost of being caught is almost nonexistent.
Another connection is that to reduce crime, societies should increase the marginal cost of committing a crime until it is above marginal benefit. The cost of guilt can be increased through improving familial connections and education. The cost of gathering supplies necessary to commit a crime can be increased through methods such as more sophisticated security systems and firearm bans. And the opportunity cost of earning a wage can be increased by improving wages through better education and training.
Economics: Principles, Problems, Policies (pg. 382)
This is a great insight to the psychological/economic reasoning for why people do and do not steal. Based on just the concept, trying to maximize total utility seems like the totally rational action, but what I never realized was how much people's guilt played in role in their decision process. I think this is a great example of people who steal consistently. For example, if you are making minimum wage and have to supply for your family, if is very possible that you will be able to rationalize stealing as a way of supporting your family. But why do people with money steal? I have seen numerous people steal things I am fairly confident they can afford, and would be at very minimal loss if they just bought.
ReplyDeleteIt's interesting to think about the idea that guilt is tied to a definite quantity of utility.
DeleteAs to the question of why people with money steal, one possible suggestion that I can think of is the social aspect of it, where peer pressure, or one-upmanship makes someone reevaluate the consequences vs. benefits balance. Because, like guilt, a perceived rise in social status by fitting in with a group of friends who are also stealing adds utility as well.
This is an interesting take on human morality. It also encourages us to beg the question: does human morality have innate characteristics, or is it rather shaped by cultural norms and society. Philosophers have long argued that humans have a moral sense due to their biological makeup and the presence of conditions conducive to ethical behavior. These conditions include: the ability to anticipate the consequences of one's actions, the capacity for multidimensional thinking and making value judgments, and the ability to make choices. Yet, returning to your comment, Tripp, why do the wealthy (term used loosely and situationally), steal? In my opinion, it seems possible, even after they have made value judgements and weighed the marginal costs and benefits, that they still steal because of the thrill they receive when doing so.
ReplyDeleteI find this take on stealing to be very interesting. I never thought of it in terms of marginal cost and marginal benefit for the consumer. It is also interesting how you tie in guilt into marginal cost, as that is more of a psychological feeling than physical cost. I have heard stories about people when they were younger, they would take a candy bar without paying but eventually felt so guilty they told their parents and took it back to the store. However, I have noticed people who steal that could very well afford the item and feel no remorse. I agree with Justin that some still steal because of the adrenaline rush they get from breaking rules. I also agree that this insight should be considered when looking into ways to prevent stealing. For those who cannot afford basic necessities for themselves or their family, the risk of stealing is minimal compared to their children going hungry. In order to reduce that, we should focus on improving wages.
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