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The Great Depression of the 1930s led to dire circumstances for a large share of American households. Contemporaries worried that a number of these households would commit property crimes in their efforts to survive the hard times. The Roosevelt administration suggested that their unprecedented and massive relief efforts struck at the roots of crime by providing subsistence income to needy families. After constructing a panel data set for 83 large American cities for the years 1930 through 1940, we estimated the impact of relief spending by all levels of government on crime rates. The analysis suggests that relief spending during the 1930s lowered property crime in a statistically and economically significant way. A lower bound ordinary least squares estimate suggests that a 10 percent increase in per capital relief spending during the Great Depression lowered property crime rates by close to 1 percent. After controlling for potential endogeneity using an instrumental variables approach, the estimates suggest that a 10 percent increase in per capital relief spending lowered crime rates by roughly 5.6 to 10 percent at the margin. More generally, our results indicate that social insurance, which tends to be understudied in economic analyses of crime, should be more explicitly and more carefully incorporated into the analysis of temporal and spatial variations in criminal activity.

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βˆ™ 12y ago
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βˆ™ 7mo ago

Crime rates during the Great Depression varied depending on the location and type of crime. Overall, crime rates increased during the Great Depression due to economic hardship and high unemployment, leading to a rise in theft and other property crimes. However, violent crimes like murder actually decreased during this time period.

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Q: What was the crime rate during the Great Depression?
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