When cities stop prosecuting crimes like shoplifting under the assumption it's driven by poverty, they inadvertently create a lucrative market for organized crime. Sophisticated gangs exploit this leniency to run large-scale theft operations, harming the community more than the original policy intended to help.
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Mayor Daniel Lurie explicitly states his administration has ended the city's long-standing "live and let live" approach to public disorder. This marks a significant policy and cultural shift, prioritizing public safety and quality of life through stricter enforcement over passive tolerance, reflecting a broader trend in liberal cities.
A novel form of organized crime involves gangs buying small, established freight forwarding businesses. They leverage the company's legitimate reputation to take possession of high-value shipping containers, steal the goods, and then promptly shut down the business and disappear, making the crime nearly untraceable.
Contrary to popular belief, law enforcement in the U.S. fails to solve the majority of homicides. The national average clearance rate is only 40%. The situation is even worse for non-violent crimes like car theft, where offenders have an 85% chance of getting away with it entirely.
The movement to defund the police doesn't eliminate the need for security; it just shifts the burden. Wealthy individuals and communities hire private security, while poorer communities, who are the primary victims of crime, are left with diminished public protection.
Policies like price caps (e.g., for insulin) or price floors (e.g., minimum wage) that deviate from market equilibrium create distortions. The economy then compensates in unintended ways, such as companies ceasing production of price-capped goods or moving to under-the-table employment to avoid high minimum wages.
When police departments face severe staffing shortages due to cultural vilification, they may lower hiring standards. This can lead to hiring individuals with criminal backgrounds, who then commit heinous acts as officers, further damaging public trust and exacerbating the original problem.
When a service like public transit is made free, it removes the financial incentives for efficiency and innovation. Without the pressure to compete for customers, bureaucracies swell, quality degrades, and problems like safety issues increase, ultimately making the service worse for its intended beneficiaries.
Profit from coercion, like government confiscation via taxation or inflation, harms total productivity in two ways. First, the coercer spends time on non-productive confiscation instead of creation. Second, the victim, having had their labor's fruits stolen, has a reduced incentive to produce in the future.
Beyond headline-grabbing scandals, the most insidious impact of a kleptocratic administration is its refusal to enforce existing laws, from financial regulations to anti-corruption acts. This quiet dismantling of the legal framework fosters a culture of impunity where bad actors thrive, ultimately harming ordinary people and destabilizing the entire system.
Just as shielding children from all hardship makes them soft, bailing out communities from their poor policy choices prevents them from learning. New York, having made its decision, must be allowed to suffer the consequences. The resulting pain is the necessary catalyst for the city to become tougher and eventually correct its course.
