Crime and inflation deal a devastating blow to downtown communities

Waves of crime swept through major cities across the country two years ago amid protests and riots in the summer of 2020 and coronavirus shutdowns that upended society. Crime has continued to rage in many cities as residents face a high cost that has been compounded by record inflation.

“Purely factually, prices tend to be higher – and service and product quality lower – in stores in lower-income neighborhoods,” economist Thomas Sowell wrote in a 2006 opinion piece. .

He said many « ghetto stores » charge higher prices for a host of reasons, including « crime, shoplifting, vandalism and riots have increased costs, both directly and in resulting in increased insurance rates and security costs ».

Sowell’s words have come true in recent years. Commercial insurance grew in 2021 following the George Floyd protests and riots the previous summer, which marked « the first civil disorder disaster to exceed $1 billion in losses for the insurance industry » , according to the World Economic Forum. Battered stores in cities have taken extra security measures and even reduced opening hours to help curb rampant shoplifting.

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Crime has ravaged major cities over the past two years, with murders rising 30% nationally in 2020 compared to 2019. Those spikes were even more pronounced in cities like New York, which saw a 44% increase in homicides over the year. previously Seattle, which saw its homicide rate rise 61% in 2020 and Philadelphia 40% from 2019.

Property crimes and thefts have also increased, including in city businesses. Specifically in California, cities like Los Angeles and the Bay Area were ravaged last year by smash and grab crimes that continued into 2022.

Rampant shoplifting has caused stores such as Walgreens and other chains to close in cities across the Golden State. Convenience stores in Philadelphia have « closed left and right » this year, while two drugstores in New York City closed after being repeatedly targeted by shoplifting.

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For many people living in these cities, a store closure means a disruption in how people get simple things like bread or milk, and can add extra transport costs.

« If you’re middle-class or upper-class, if Walgreens closes, it’s not that bad, maybe a minor inconvenience. But you can probably walk a few extra miles to the next store pretty easily. closer, » said the Heritage Foundation’s legal adviser. Zack Smith told Fox News Digital.

A Walgreens in San Francisco, where a handful of such stores closed last year. (Google Maps)
(Google Maps)

However, « if you’re someone who’s one of the poorest members of our communities, Walgreens closing or a grocery store having reduced hours, that’s a big deal. You might not be able to walk the extra few miles, you may not be able to use public transport to walk the extra few miles.If you are working, reduced hours may impact your availability to meet basic needs « , he added.

Historically, city dwellers have borne higher costs at local grocery stores and bodegas. A government study published in 1997 found that low-income households are less likely to live in suburban areas where food prices are generally cheaper.

Grocery shoppers in a suburb of Washington, DC
(Digital Fox News)

« Suburban supermarkets generally have the lowest food prices and the widest selection, but the poor tend to live in central cities and rural areas. Central city grocery stores have higher operating costs and tend to be smaller and unable to take advantage of economies of size,” the study found.

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Additionally, there are invisible costs to Americans living in crime-riddled cities that have an incalculable impact.

« The impact is almost immeasurable, » the Heritage Foundation’s Amy Swearer told Fox News Digital when asked about the cost of crime to communities in cities.

“You can measure it in terms of…stores leaving [cities]. But there is a kind of immeasurable impact: children who are afraid to walk to school. How to measure PTSD? How to measure fear? How do you measure people who decide not to go to a store today? »

While crime has dominated cities and their communities, inflation has also dealt a heavy blow.

Inflation has hit its highest level in 40 years and estimates show it cost the average US household about $635 in June alone. Studies have shown that inflation often hurts low-income families, minority communities, and Americans in rural parts of the country the most. Low-income households are often « exposed » to the items hardest hit by inflation, such as energy and food, while lower levels of savings and income are unable to absorb easily higher costs compared to wealthier households, according to a Bank of America study published in November found.

For many, inflation is a financial double whammy. The coronavirus shutdowns have destroyed businesses across the country and workers have been laid off or had their hours cut, leaving many Americans struggling financially before inflation set them back further.

Sign that a store is closed due to the coronavirus pandemic (iStock)
(Inventory)

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For some city dwellers who depend on their local grocers, they have been driven to tears by inflation and store closings.

« I’ve seen tears and laughter, » Tony Moore, who runs a group home in downtown Kenosha, Wis., recently told Kenosha News about the inflation that is squeezing his neighborhood. « I saw people crying, because what are we going to do? And I see people laughing because we can do? »

In California, residents of San Francisco said the Walgreens closures had been devastating.

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« This Walgreens was essential, at least for my family, » Gina Mullins said of the closure of a Walgreens in the Mission District last year, according to the Guardian. « It’s closer than Safeway, has more items than the corner store, and they have a pharmacy attached. It’s a must-see, so to see them closing in neighborhoods that really need them is heartbreaking. »