Question

why is the research of "Effects of Income Inequality on Crime" is important/relevant to Policy Making and Economics?

Answer 1

Policy refers to a course of action that the government sets in different segments. Along with economic development and growth, there are several other aspects to a society or an economy . Crime is one of the aspects that equally affect the social as well as economic situation of the economy.

One of the major reasons that people are involved in criminal activities like theft, abduction etc is the lack or shortage of income. When people cannot make both ends meet,   they look up at crime. Understanding the relationship between the two, helps find the extent to which crime is based on income inequality. This understanding can then guide the policy makers to devise or alter the policies based on the analysis. Create income opportunities or set the basic minimum wages in different industries.

The policy makers can create policies that will help reduce the gap between different income levels. When crime rates reduce due to these policies, the government spending on corrective measures will also reduce. These funds can then be diverted to other areas where people can be provided with income opportunities or the wage rates can be increased. The understanding of this relation also helps improve HDI- human development index. This is one the parameters that investing counties look for in the countries they wish to invest. This helps the growth of the economy.