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An alternative theory to explain America’s murder spike in 2020

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You might call it a new golden age. America’s economy is strong, overdose deaths are falling and crime rates are down. For the second consecutive year murders in America have plummeted. The surge in violence in 2020, which was the deadliest year in over two decades, may now seem like a distant memory to some. Yet for criminologists and policymakers the question of what caused that spike in the first place remains unanswered.

A popular theory, advanced prominently by Heather Mac Donald of the Manhattan Institute, a think-tank, is that it was caused by a “George Floyd effect”. The theory is as follows: after the murder of Floyd by police officers in Minneapolis in 2020, police lost trust in high-crime communities and among African-Americans, leading to lower clearance rates for murders. When people think they will not get caught, they commit more crime. Another version of the Floyd effect thesis holds that police officers, beset by rising public hostility, deliberately pulled back from high-crime neighbourhoods, for fear of being prosecuted for doing their jobs. Either way, protests against police brutality lead directly to more murders, a bitter unintended consequence for the protesters and, perhaps, evidence of the kind of soft liberalism from big-city Democrats that Donald Trump was elected to expunge.

A recent report from the Brookings Institution, a think-tank, advances an alternative theory. Rohit Acharya and Rhett Morris, the report’s authors, argue that the rise in murders began in April 2020, about six weeks before the murder of Mr Floyd. They contend that high unemployment and school closures in poor neighbourhoods, both brought about by covid-19 and the policy response to it, left teenage boys idle. This, not the Floyd effect, was responsible for the murder spike. This would suggest an awful trade-off: those early lockdowns saved many lives, but they also may have resulted in more murders.

Chart: The Economist

Using weekly national homicide data, Messrs Acharya and Morris show that throughout the summer of 2020 murders rose 30% compared with the summer of 2019. Crucially, they do not find an inflection point around the end of May, when Mr Floyd was killed. Across the six weeks preceding his death national weekly murders increased by around 17 murders per week, a rate 70% greater than the same period in 2019. And during the six weeks following his death, murders rose at a similar rate.

What, then, caused this increase? The authors theorise that the economic circumstances of the pandemic are to blame. Criminologists concur that, in general, poverty correlates with crime rates. In Atlanta, 65% of all homicides occur in neighbourhoods where at least 30% of the population lives below the poverty line. Nearly every big American city displays this trend. Poorer neighbourhoods were also disproportionately affected by the pandemic: job losses and high-school dropout rates were far higher. Cities with a greater share of young men living in these conditions saw larger increases in homicides in 2020.

Juveniles typically commit few murders. Though roughly half of murders go unsolved and not all jurisdictions report the age of the murderer, the available data suggest that fewer than 10% of homicides are committed by those under the age of 18. Yet between 2019 and 2020 juveniles accounted for an estimated 15-20% of the overall surge. That seems consistent with the idea that closed schools and idle teenage boys are a big part of the story.

Criminologists tend to be wary of single explanations. “It’s very difficult to come up with a definitive conclusion about what happened in 2020, because so many things changed at the same time”, says Aaron Chalfin, a criminologist at the University of Pennsylvania who was not involved with the Brookings report. He notes that, in the past, unemployment rates have not correlated with murder rates, although that does not necessarily mean no such relationship arose during the pandemic. And teasing out the interactions between variables is trickier still. Were school closures in poorer neighbourhoods responsible for juveniles committing more murders, or was it school closures plus fewer police officers patrolling the streets?

The research, says Neil Gross, a professor of criminology at Colby College (who was also not involved in the study), suggests that the nature of social ties in poor areas matters. Crime is often lower where “people know their neighbours and can look out on the street for errant teenagers and contact their parents”, says Mr Gross. That suggests yet another potential suspect: such neighbourhood watchers were locked down at home. 

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Economics

Abortion becomes more common in some US states that outlawed it

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ANGEL FOSTER has a vision of a patient. “Imagine you’re a 23-year-old woman in rural Texas”, the doctor and public-health researcher says. This patient is pregnant and wants an abortion. For years, she’s been told that it is illegal in her state, with almost no exceptions. But then, with a bit of Googling, “you find out that there’s this group of people in Massachusetts that will send you FDA-approved medications in the mail.” The ordeal will be over in a few days and will cost $5. “It sounds absolutely bananas, right?” she asks “How could it be legal? How could it be safe?”

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Will the Supreme Court empower Trump to sack the Fed’s boss?

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OVER 14 seasons of “The Apprentice”, Donald Trump gleefully dispatched more than 200 contestants for botching a task or ruffling the wrong feather. In his second term as president, Mr Trump is discovering that axing federal-agency heads protected by “for-cause” removal statutes may require more than an imperious finger-point. In the latest of a series of emergency applications to the Supreme Court, he is asking the justices to grant him the unfettered power he once wielded on reality TV.

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Fed Governor Waller sees tariff inflation as ‘transitory’ in ‘Tush Push’ comparison

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Federal Reserve Governor Christopher Waller speaks during The Clearing House Annual Conference in New York City, U.S. November 12, 2024. 

Brendan Mcdermid | Reuters

Federal Reserve Governor Christopher Waller said Monday he expects the impacts of President Donald Trump’s tariffs on prices to be “transitory,” embracing a term that got the central bank in trouble during the last bout of inflation.

“I can hear the howls already that this must be a mistake given what happened in 2021 and 2022. But just because it didn’t work out once does not mean you should never think that way again,” Waller said in remarks for a policy speech in St. Louis that compared his inflation view to the controversial “Tush Push” football play.

Laying out two scenarios for what the duties eventually will look like, Waller said larger and longer-lasting tariffs would bring a larger inflation spike initially to a 4%-5% range that eventually would ebb as growth slowed and unemployment increased. In the smaller-tariff scenario, inflation would hit around 3% and then fall off.

Either case would still see the Fed cutting interest rates, with timing being the only question, he said. Larger tariffs might force a cut to support growth, while smaller duties might allow a “good news” cut later this year, Waller added.

“Yes, I am saying that I expect that elevated inflation would be temporary, and ‘temporary’ is another word for transitory,'” he said. “Despite the fact that the last surge of inflation beginning in 2021 lasted longer than I and other policymakers initially expected, my best judgment is that higher inflation from tariffs will be temporary.”

The “transitory” term harkens back to the inflation spike in 2021 that Fed officials and many economists expected to ease after supply chain and demand factors related to the Covid pandemic normalized.

However, prices continued to rise, hitting their highest since the early 1980s and necessitating a series of dramatic rate hikes. While inflation has pulled back substantially since the Fed started raising in 2022, it remains above the central bank’s 2% target. The Fed cut its benchmark borrowing rate by a full percentage point in late 2024 but has not cut further this year.

A Trump appointee during the president’s first term, Waller used a football analogy to explain his views on “transitory” inflation. He cited the Philadelphia Eagles’ famed “Tush Push” play that the team has used to great effect on short-yardage and goal line situations.

“You are the Philadelphia Eagles and it is fourth down and a few inches from the goal line. You call for the Tush Push but fail to convert by running the ball,” he said. “Since it didn’t work out the way you expected, does that mean that you shouldn’t call for the Tush Push the next time you face a similar situation? I don’t think so.”

Waller estimated that Trump has either of two goals from the tariffs: to keep the levies high and remake the economy, or use them as negotiating tactics. In the first case, he sees growth slowing “to a crawl” while the unemployment rate rises “significantly.” If the tariffs are negotiated down, he sees the impact on inflation to be “significantly smaller.”

In the other case, he said “one of the biggest shocks to affect the U.S. economy in many decades” is making forecasting and policymaking difficult. Fed officials will need to “remain flexible” in deciding the future path.

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