Economic Theories of Crime Causation
Economic theories suggest that crime is driven by financial factors, economic
inequality, and lack of opportunities. These theories argue that individuals commit
crimes when legitimate ways to earn money are limited or when crime offers
higher rewards than legal work.
1. Rational Choice Theory (Gary Becker, 1968)
People commit crimes after weighing risks and rewards.
If crime offers high benefits with low risk of punishment, individuals will
engage in it.
Example:
A hacker steals millions through cyber fraud because the risk of getting caught
is low.
Policy Implication:
Stronger law enforcement (higher risks) can deter crime.
2. Routine Activity Theory (Cohen & Felson, 1979)
Crime happens when three factors are present:
1. Motivated Offender – Someone willing to commit crime.
2. Suitable Target – A vulnerable victim (e.g., unattended property).
3. Lack of Capable Guardian – No police, security, or witnesses.
Example:
A snatcher targets a lone commuter at night because no police are around.
Policy Implication:
Increase surveillance, street lighting, and police presence to prevent crime.
3. Strain Theory (Robert Merton, 1938) – Economic Perspective
Poverty and lack of opportunities force people into crime.
Lower-class individuals turn to theft, drug dealing, or fraud to survive.
Example:
A jobless man robs a store because society values wealth, but he has no legal
way to earn money.
Policy Implication:
More jobs, education, and welfare programs reduce crime.
4. Marxist/Conflict Theory (Karl Marx, 1848)
Crime is a result of class struggle between the rich and poor.
Laws protect the wealthy, while the poor are criminalized.
Corporate crimes (fraud, tax evasion) by the elite are often overlooked, while
petty crimes (theft, vagrancy) are harshly punished.
Example:
A billionaire gets a light sentence for corruption, but a homeless man is jailed
for stealing bread.
Policy Implication:
Reform laws to make justice fair for all social classes.
5. Broken Windows Theory (Wilson & Kelling, 1982) – Economic Influence
Neglected, poor areas breed crime because they show lawlessness.
If small crimes (vandalism, loitering) are ignored, serious crimes (robbery,
violence) increase.
Example:
A rundown neighborhood with graffiti and abandoned buildings attracts drug
dealers and gangs.
Policy Implication:
Fix urban decay, clean streets, and enforce small laws to prevent bigger
crimes.