Government

How the Plummeting Price of Cocaine Fueled the Nationwide Drop in Violent Crime

Competition in the illicit drug trade and reduced incentives for small-time dealers all coincided with this dramatic shift in U.S. cities
Reuters

Starting in the mid-1990s, major American cities began a radical transformation. Years of high violent crime rates, thefts, robberies, and inner-city decay suddenly started to turn around. Crime rates didn't just hold steady, they began falling faster than they went up. This trend appeared in practically every post-industrial American city, simultaneously.

"The drop of crime in the 1990s affected all geographic areas and demographic groups," Steven D. Levitt wrote in his landmark paper on the subject, Understanding Why Crime Fell in the 1990s, and elucidated further in the best-selling book Freakonomics. "It was so unanticipated that it was widely dismissed as temporary or illusory long after it had begun.” He went on to tie the drop to the legalization of abortion 20 years earlier, dismissing police tactics as a cause because they failed to explain the universality and unexpectedness of the change. Alfred Blumstein's The Crime Drop in America pinned the cause of crime solely on the crack epidemic but gave the credit for its disappearance to those self-same policing strategies.