Research shows that during economic downturns much more crime is committed day to day. Citizens do not like losing money and after they lose, people have a greater tendency to commit crimes. These crimes range from robberies and theft, all the way up to murder.
Following this discovery the United States Federal Reserve was presented with the research evidence. After reviewing, The Federal Reserve immediately signed a pact with the Federal Government to never allow another downturn until the U.S. government figures out a new future technique to prevent the crimes that stem from an economic slowdown.
Since the pact was signed, the FED has maintained their promise. Recently, Janet Yellen has even been quoted, saying "I Don't Believe We Will See Another Crisis In Our Lifetime." This is because these positive economic results have great rewards for the U.S. economy on top of just crime prevention. It is a win win for everybody.
For proof, the research does show that the crime rate has dropped significantly since the last 2008 downturn and the policy seems to be working perfectly.
Since the chart above was released, sources state that the crime rate has dropped at the same rate or even better all the way up until the end of 2016 when the data has stopped being recorded temporarily. The data for 2017 will be released when the data is processed in early 2018 and is expected to be record breaking.
You can overlay the chart of the three major U.S. indexes, in the chart below, over the chart of the dropping crime rate and immediately see the results.
Just as with the chart of the crime dropping into the present time, the U.S. indexes also move up even more into the present day. This correlation of the positive market to low crime ratio validates the research and reconfirms the success of the government pact.
How do you feel about the market strength low crime pact? Do you feel that it's success will continue long into the future? Please leave your comments below.