Jul 9, 2006
The Economics of Looting in Devastated Areas
From the perspective of neoclassical economics as embodied in, say, Posnerian law-and-economics, an economist might well argue that some of the looting within devastated areas would be"economically efficient". After all, it would seem that if perishable goods weren't looted, they would be destroyed by the flood waters this week and by the passage of time in coming weeks.
Indeed, I would defend people without vital provisions taking them from deserted shops provided that they subsequently offer to make reparations. According to the Times-Picayune, it seems that the police assisted people to take such provisions:
> At the Wal-Mart on Tchoupitoulas Street, an initial effort to hand out provisions to stranded citizens quickly disintegrated into mass looting.
There is also the question of long-term incentives. A neoclassical economist would not wish to encourage looting in the future so there would seem to be a strong case for the police to stop people looting consumer durables although not perishable foodstuffs.
However, it appears that the police and firefighters were looting alongside private citizens. The Times-Picayune reports:
> Throughout the store and parking lot, looters pushed carts and loaded trucks and vans alongside officers. One man said police directed him to Wal-Mart from Robert’s Grocery, where a similar scene was taking place. A crowd in the electronics section said one officer broke the glass DVD case so people wouldn’t cut themselves.
> “The police got all the best stuff. They’re crookeder than us,” one man said.
And more:
> Inside the store, one woman was stocking up on make-up. She said she took comfort in watching police load up their own carts.
> “It must be legal,” she said. “The police are here taking stuff, too.”
Which, of course, poses a problem for your typical neoclassical economist who supports a"limited" role for the state to provide"public goods". I’m grateful that I’m not your typical neoclassical economist.
The Times-Picayune continues:
> The scene turned so chaotic at times that entrances were blocked by the press of people and shopping carts and traffic jams sprouted on surrounding streets.
> Some groups organized themselves into assembly lines to more efficiently cart off goods.
This is clearly rationally cooperative behavior (among thieves). I guess even Austrian economists may take a certain professional satisfaction in such conduct!
Indeed, I would defend people without vital provisions taking them from deserted shops provided that they subsequently offer to make reparations. According to the Times-Picayune, it seems that the police assisted people to take such provisions:
> At the Wal-Mart on Tchoupitoulas Street, an initial effort to hand out provisions to stranded citizens quickly disintegrated into mass looting.
There is also the question of long-term incentives. A neoclassical economist would not wish to encourage looting in the future so there would seem to be a strong case for the police to stop people looting consumer durables although not perishable foodstuffs.
However, it appears that the police and firefighters were looting alongside private citizens. The Times-Picayune reports:
> Throughout the store and parking lot, looters pushed carts and loaded trucks and vans alongside officers. One man said police directed him to Wal-Mart from Robert’s Grocery, where a similar scene was taking place. A crowd in the electronics section said one officer broke the glass DVD case so people wouldn’t cut themselves.
> “The police got all the best stuff. They’re crookeder than us,” one man said.
And more:
> Inside the store, one woman was stocking up on make-up. She said she took comfort in watching police load up their own carts.
> “It must be legal,” she said. “The police are here taking stuff, too.”
Which, of course, poses a problem for your typical neoclassical economist who supports a"limited" role for the state to provide"public goods". I’m grateful that I’m not your typical neoclassical economist.
The Times-Picayune continues:
> The scene turned so chaotic at times that entrances were blocked by the press of people and shopping carts and traffic jams sprouted on surrounding streets.
> Some groups organized themselves into assembly lines to more efficiently cart off goods.
This is clearly rationally cooperative behavior (among thieves). I guess even Austrian economists may take a certain professional satisfaction in such conduct!