Costs of Crime
On average, how much do the full impacts of crime cost each U.S. household per year?
Correct Answer
A 2021 paper in the Journal of Law and Economics estimated that crime costs the people of the United States about $4.71–$5.78 trillion per year, including, “victims’ losses,” “the direct costs of law enforcement,” the costs of courts, prisons, and rehabilitation programs, “the indirect costs of private deterrence,” the indirect costs of “fear and agony,” and the “time lost to avoidance and recovery.” These costs amount to 20% to 24% of the U.S. economy and $36,000 to $45,000 per U.S. household in 2021. The paper explains, “Crime exacts a toll on society far greater than its direct repercussions. An environment of crime and concomitant distrust prompts expenditures on prevention, recovery, justice, and corrections. Beyond asset transfers from victim to criminal, losses to crime comprise lives, health, fear, work, human capital, and time.”
Documentation2021 PaperCosts Per Household