Economic Theory of Criminology: Rational Choice and Crime

Introduction to the Economic Theory of Criminology

Criminology and the thought processes of criminals have long been a point of contention for society. The need to identify why and how criminals behave the way they do ultimately provides a means of maintaining the integrity of society. In addition, continual research in the field is required as criminals continue to develop new and unique methods of disrupting the underlying values and principles of social order. By continually learning about criminal behavior, law enforcement — in conjunction with governments and communities — can better protect law-abiding citizens while also mitigating unlawful behavior.

One such theory that contributes to this understanding is the economic theory of criminology. This theory was originally formalized by Gary Becker in 1968 and has been adapted over the years by many criminologists around the world. The theory states that criminals are, from an economic perspective, rational actors who respond to incentives established by the criminal justice system. Would-be criminals compare the potential gain of a crime and the likelihood of succeeding at it against the possibility of getting caught and the consequences associated with that outcome.

Rational Choice and the Cost-Benefit Framework

This cost-benefit framework explains a large amount of criminal behavior, particularly when an individual feels they have "nothing to lose" from a psychological perspective. Many criminals who feel they have little or no alternative in life often perceive the punishment for a crime as small when compared to what they stand to gain. For example, those with substantial wealth and financial freedom are far less likely to commit serious crimes such as murder than those who feel they have nothing to lose.

Socioeconomic Status and Criminal Motivation

A recent illustration of this dynamic occurred in the New York City subway mass shooting on April 13, 2022. The shooter, Frank James, was apprehended by police following the attack. In YouTube videos uploaded just two days before the incident, James was recorded saying, "I've been through a lot of s**t, where I can say I wanted to kill people. I wanted to watch people die right in front of my f**king face immediately." Although a clear motive had not been definitively ascribed to the incident, he indicated that he had endured numerous hardships throughout his life.

In regard to his socioeconomic status, James had very little to lose. He had been arrested twelve times prior to the attack and had been unable to establish a long-term career, holding various short-term positions with DoorDash, Uber, and warehouse employers. At nearly 65 years old, James had very little economic productivity remaining. In this context, the perceived benefit of striking back at a community he felt had wronged him over the years outweighed the consequence of prison time — thereby substantiating the economic theory of criminology.

This case also highlights how socioeconomic marginalization can distort the rational calculus that Becker's model describes. When an individual has few assets, limited employment prospects, and a long criminal history, the deterrent value of incarceration diminishes significantly. As scholars such as Wenger and Bonomo (1993) have argued, crime must be understood not only through individual rational choice but also in relation to broader economic conditions and systemic inequality.

References

Wenger, M. G., & Bonomo, T. A. (1993). Crime, the crisis of capitalism, and social revolution. In D. F. Greenberg (Ed.), Crime and capitalism: Readings in Marxist criminology (pp. 674–688). Temple University Press.