Transitioning America’s Criminal Justice System

“The United States today delivers law and order in the same socialist manner that the U.S.S.R. delivered food

and shoes - and with comparable results.”

--Randy Barnett (Benson, 1998, p. ii)

Daniel J. D’AmicoMises Academy: The American Prison

State

Prison Inmates in the US

State’s plus Federal

Total

Inmates charged

with violent crimes

…property crimes

…drug crimes Difference

Inmates 1,296,700 687,700 248,900 253,300 794,500

Criminal Offense Type

  StateTotal Inmate Population Property Drugs Remainders

1 Texas 171,790 26,133 29,489 116,1682 California 156,108 34,574 32,510 89,0253 Florida 92,844 20,846 19,174 52,8244 New York 62,599 6,870 13,426 42,3035 Georgia 52,478 10,381 8,984 33,1136 Michigan 51,570 4,541 4,314 42,7157 Ohio 49,691 4,319 7,889 37,4838 Pennsylvania 46,028 3,998 7,917 34,1139 Illinois 45,402 9,203 10,914 25,285

10 North Carolina 38,423 4,783 6,171 27,46911 Louisiana 37,969 6,669 10,792 20,50912 Arizona 35,801 9,074 8,101 18,62613 Virginia 31,647 9,086 5,963 16,59814 Missouri 30,689 6,277 5,708 18,70415 Alabama 29,235 8,236 5,357 15,64216 Indiana 27,807 5,032 4,018 18,75717 New Jersey 27,494 3,098 8,478 15,91818 Tennessee 26,415 9,459 5,314 11,64219 Oklahoma 25,147 No Data 7,668 17,47920 South Carolina 24,239 5,353 4,740 14,146

           Totals 1,039,137 654,372

  StateTotal Inmate Population

Annual Cost Per Inmate

Total Annual Inmate Costs

Hypothetical Inmate Population

Hypothetical Total Inmate Cost

1 Texas 171,790 $18,031.00 $3,097,545,490 116,168 $2,094,625,2082 California 156,108 $35,587.00 $5,555,415,396 89,025 $3,168,132,6753 Florida 92,844 $18,585.80 $1,725,580,015 52,824 $981,776,299.204 New York 62,599 $36,835.00 $2,305,834,165 42,303 $1,558,231,0055 Georgia 52,478 $16,181.00 $849,146,518 33,113 $535,801,4536 Michigan 51,570 $26,353.83 $1,359,067,013 42,715 $1,125,703,8487 Ohio 49,691 $24,644.80 $1,224,624,757 37,483 $923,761,038.408 Pennsylvania 46,028 $32,032.00 $1,474,368,896 34,113 $1,092,707,6169 Illinois 45,402 $21,278.00 $966,063,756 25,285 $538,014,230

10 North Carolina 38,423 $26,104.80 $1,003,024,730 27,469 $717,072,751.2011 Louisiana 37,969 $15,775.30 $598,972,365.70 20,509 $323,535,627.7012 Arizona 35,801 $22,535.00 $806,775,535 18,626 $419,736,91013 Virginia 31,647 $22,830.00 $722,501,010 16,598 $378,932,34014 Missouri 30,689 $12,867.00 $394,875,363 18,704 $240,664,36815 Alabama 29,235 $14,402.90 $421,068,781.50 15,642 $225,290,161.8016 Indiana 27,807 $20,589.65 $572,536,397.60 18,757 $386,200,065.1017 New Jersey 27,494 $34,600.00 $951,292,400 15,918 $550,762,800

18 Tennessee 26,415 $22,779.65 $601,724,454.80 11,642 $265,200,685.3019 Oklahoma 25,147 $17,206.10 $432,681,796.70 17,479 $300,745,421.9020 South Carolina 24,239 $16,432.00 $398,295,248 14,146 $232,447,072

Total Difference $9,402,052,513

CorrelationsQuintile Average Inmate Population 2007 Average Estimated Annual

Cost Per InmateI 79,138.7 $25,235.84

II 30,283.9 $20,329.24

III 19,526.3 $24.441.42

IV 7,793.6 $25,510.95

V 3,127.3 $31,989.88

Correlations with smaller sampleQuintile Average

Inmate Population

2007

Average Property

Crime: Total Inmate Ratio

Average Drug Crime : Total Inmate Ratio

Average Estimated

Annual Cost Pet Inmate

I 88,512.88 0.16 0.18 $26,031.30

II 35,367.69 0.21 0.20 $19,547.83

III 24,457.00 0.19 0.22 $24,004.38

IV 12,220.75 0.15 0.17 $27,558.06

V 4,492.29 0.19 0.15 $27,391.54

Criminal Justice and the Financial Crisis

• $2,000,000,000: Edward Byrne Memorial Justice Assistance Grant program• $225,000,000: grants to improve the functioning of the criminal justice

system • $40,000,000: competitive grants to provide assistance and equipment to

local law enforcement along the Southern border• $225,000,000: assistance to Indian tribes• $100,000,000: Office for Victims of Crime• $125,000,000: for assistance to law enforcement in rural States and rural

areas, to prevent and combat crime, especially drug-related crime.• $50,000,000: for Internet Crimes Against Children initiatives.• $225,000,000 for grants to combat violence against women• Total: $2,990,000,000

What is Transition Economics?

• Comparative Economics: Markets vs. Planning

• Transition Economics: How do we move from here to there?

• Development Economics: How do we grow market economies?

Policy Suggestions

*Radically cut federal and state criminal justice financing. Consider constitutional constraint moving forward.

*Deregulate private security industry. *End all prohibitions on controlled substances

and victimless crimes.*”De-criminalize” property violations and allow

for civil arbitration.

Shock Therapy

The case for radically cutting centralized criminal justice financing

*Hard budget constraints promote efficient resource allocation.

*Violent crime is currently low.*The cultural proximity between the American urban

poor and market processes is low relative to other shock therapy cases.

*Informal networks tend to be resilient and adaptive.