I’ll support my case with Paraguay, one of the countries listed as being high inequality/high crime in a list in a recent comment. In Paraguay you can easily buy a stolen car for relatively little (thus participating in a crime). At the same time, your car is likely to get stolen.
So, what do people rationally do in this situation? There is, first of all, an incentive against owning any car at all because of the likelihood that it will be stolen. But this is especially strong as an incentive against paying full price to legally own a car. Because stolen cars are significantly cheaper, this gives you a strong incentive to favor buying a stolen car over a legally owned car.
I do not see any significant status element specifically tied to owning a stolen car in Paraguay. There is of course always a status element tied to owning a car, but it is not tied specifically to the crime. On the contrary, the rich in Paraguay, who are able to afford gated, protected areas to keep their cars, presumably tend to legally own cars (I infer that this is the case from personal observation, because the cars of the rich that I’ve seen look new; the stolen cars that my non-rich acquaintances own look pretty beat up and old). That being the case, it is presumably high status to own a car legally and low status to own a car illegally. I don’t pry, but this is what I gather.
So the widespread corruption of Paraguayan society on this matter has to do with practical realities, not with status, on my analysis. Your argument is that only a tiny minority benefit from engaging in crime. But it seems to me that the ordinary Paraguayan benefits from buying a stolen car, thus participating in the crime. So there seems to be a serious gap in your argument somewhere.
Paraguay is a country in which the government is utterly corrupt. That being the case, the people are not protected—they are essentially on their own. The government is kleptocratic. I was told the sad story of someone whose business was simply seized by a member of the government. In this country, many of the rich are rich because of their connections with the government. And many of the poor are poor because they are completely unprotected from predation and therefore have little incentive to stand out.
In Paraguay, I heard that Korean grocers (who run by far the best small groceries) are filthy because they allegedly sleep in the store. If they do (which, from the one case I know, a Korean grocer who is a friend of a cousin, they do not, though as I recall they sleep in the same building just above the store) it may be because it is the only way to protect their property. Here, by the way, I have an example of a sub-population (Koreans) which is disproportionately successful and which is resented by the larger population.
You’re right—my above comment was too specifically concerned with the U.S. and other developed nations. In places that are poorer and where law enforcement is much less strong and reliable, financial incentives for crime may well be at the forefront even for low-level crooks.
On the other hand, it’s also important to note that when some laws are enforced very weakly or not at all, the very notion of “crime” becomes blurry, and what would clearly be crimes under decent law enforcement may effectively become just regular customary behavior expected from everyone. I find your account of the stolen car market in Paraguay really interesting; from what you say, it appears that since the legal enforcement of property in cars is completely broken, they have been replaced with a peculiar customary system where cars just change hands liberally and randomly. In such a situation, I’m not sure if I would classify buying a stolen car as crime.
I’ll support my case with Paraguay, one of the countries listed as being high inequality/high crime in a list in a recent comment. In Paraguay you can easily buy a stolen car for relatively little (thus participating in a crime). At the same time, your car is likely to get stolen.
So, what do people rationally do in this situation? There is, first of all, an incentive against owning any car at all because of the likelihood that it will be stolen. But this is especially strong as an incentive against paying full price to legally own a car. Because stolen cars are significantly cheaper, this gives you a strong incentive to favor buying a stolen car over a legally owned car.
I do not see any significant status element specifically tied to owning a stolen car in Paraguay. There is of course always a status element tied to owning a car, but it is not tied specifically to the crime. On the contrary, the rich in Paraguay, who are able to afford gated, protected areas to keep their cars, presumably tend to legally own cars (I infer that this is the case from personal observation, because the cars of the rich that I’ve seen look new; the stolen cars that my non-rich acquaintances own look pretty beat up and old). That being the case, it is presumably high status to own a car legally and low status to own a car illegally. I don’t pry, but this is what I gather.
So the widespread corruption of Paraguayan society on this matter has to do with practical realities, not with status, on my analysis. Your argument is that only a tiny minority benefit from engaging in crime. But it seems to me that the ordinary Paraguayan benefits from buying a stolen car, thus participating in the crime. So there seems to be a serious gap in your argument somewhere.
Paraguay is a country in which the government is utterly corrupt. That being the case, the people are not protected—they are essentially on their own. The government is kleptocratic. I was told the sad story of someone whose business was simply seized by a member of the government. In this country, many of the rich are rich because of their connections with the government. And many of the poor are poor because they are completely unprotected from predation and therefore have little incentive to stand out.
In Paraguay, I heard that Korean grocers (who run by far the best small groceries) are filthy because they allegedly sleep in the store. If they do (which, from the one case I know, a Korean grocer who is a friend of a cousin, they do not, though as I recall they sleep in the same building just above the store) it may be because it is the only way to protect their property. Here, by the way, I have an example of a sub-population (Koreans) which is disproportionately successful and which is resented by the larger population.
You’re right—my above comment was too specifically concerned with the U.S. and other developed nations. In places that are poorer and where law enforcement is much less strong and reliable, financial incentives for crime may well be at the forefront even for low-level crooks.
On the other hand, it’s also important to note that when some laws are enforced very weakly or not at all, the very notion of “crime” becomes blurry, and what would clearly be crimes under decent law enforcement may effectively become just regular customary behavior expected from everyone. I find your account of the stolen car market in Paraguay really interesting; from what you say, it appears that since the legal enforcement of property in cars is completely broken, they have been replaced with a peculiar customary system where cars just change hands liberally and randomly. In such a situation, I’m not sure if I would classify buying a stolen car as crime.