The Economic Recession and Its Link to Crime
1. Introduction
It is no secret that when the economy is not doing well, neither are the people. For instance, during an economic recession, people may lose their jobs, have their hours cut at work, or see a general decrease in their wages. This often leads to an increase in crime rates as people turn to desperate measures to make ends meet. In this essay, we will explore how economic recession can lead to an increase in crime rates and its social effects.
2. What is economic recession?
Economic recession according to the economists is as a period when there is a contraction in the business cycle and hence a general slow down in economic activity. The main features of economic recession are falling output and jobs, rising unemployment, and tighter credit conditions. Economic recession usually results from various factors such as political instability, financial crisis etc.
3. Causes of economic recession
There are many causes of economic recession but the most common ones are political instability and financial crisis. Political instability can lead to a decrease in investment as businesses become uncertain about the future of the country. This often leads to a decrease in output and jobs which can trigger an economic recession. Financial crisis can also cause an economic recession as it leads to a decrease in demand for goods and services and an increase in borrowing costs which can further reduce investment and output.
4. How does economic recession lead to crime?
The most direct way that economic recession can lead to crime is through unemployment. When people lose their jobs or have their hours cut at work, they may turn to criminal activity to make ends meet. This often includes things like theft, robbery, or even prostitution. Additionally, during an economic recession there is often an increase in drug use as people try to cope with the stress of their situation. This can lead to more violent crimes as people fight over territory or money. Economic recession can also lead to an increase in white-collar crime as businesses look for ways to save money and may engage in fraudulent activities.
5. Political instability and crime
Political instability can lead to a decrease in investment as businesses become uncertain about the future of the country. This often leads to a decrease in output and jobs which can trigger an economic recession (as we discussed in the previous section). As people lose their jobs or have their hours cut at work, they may turn to criminal activity to make ends meet. Additionally, political instability can also lead to an increase in drug use as people try to cope with the stress of their situation. This can cause more violence as people fight over territory or money.
6. Financial crisis and crime
Financial crisis can cause an economic recession as it leads to a decrease in demand for goods and services and an increase in borrowing costs which can further reduce investment and output (as we discussed in the previous section). As people lose their jobs or have their hours cut at work, they may turn to criminal activity to make ends meet. Additionally, during a financial crisis there is often an increase in drug use as people try to cope with the stress of their situation. This can lead to more violent crimes as people fight over territory or money. Financial crisis can also lead to an increase in white-collar crime as businesses look for ways to save money and may engage in fraudulent activities.
7. Social effects of economic recession
The social effects of economic recession can be just as detrimental as the economic effects. As people lose their jobs or have their hours cut at work, they may turn to criminal activity to make ends meet. This often includes things like theft, robbery, or even prostitution. Additionally, during an economic recession there is often an increase in drug use as people try to cope with the stress of their situation. This can lead to more violent crimes as people fight over territory or money. Additionally, the social effects of economic recession can include an increase in mental health problems as people struggle to cope with the stress of their situation.
8. Conclusion
In conclusion, economic recession can lead to an increase in crime rates and its social effects. The most direct way that economic recession can lead to crime is through unemployment. When people lose their jobs or have their hours cut at work, they may turn to criminal activity to make ends meet. This often includes things like theft, robbery, or even prostitution. Additionally, during an economic recession there is often an increase in drug use as people try to cope with the stress of their situation. This can lead to more violent crimes as people fight over territory or money. Economic recession can also lead to an increase in white-collar crime as businesses look for ways to save money and may engage in fraudulent activities.