The conflicts between private values and the law in a mixed economy also encourage growing numbers of citizens to view the legal authorities with skepticism and even antagonism. Such cynical attitudes toward policemen, judges, and other law enforcement officials render it increasingly difficult for these authorities to enforce even those legitimate laws that protect individuals and property.

The growth in crime, together with the proliferation of often-frivolous civil lawsuits (see p. 5.4:69), increases the burden on the court system, which can no longer function as efficiently unless more taxes are levied to fund additional courts, judges, and other officials. As judicial costs grow, legal expenses and liability insurance premiums escalate. Increased legal liability costs may also render some professions unprofitable, leading to scarcities of skilled professionals in certain areas (e. g., obstetrics). Rising crime also imposes direct costs upon its victims, who suffer increased property losses and/or increased expenses for private security guards and systems. The issue of who should pay for increased security may lead to angry disputes, e. g., between tenants and apartment-complex managers. Rising crime also escalates the costs of public police forces, necessitating further tax increases. The additional taxes, legal expenses, rising premiums, scarcities of qualified professionals, property losses from crime, and increased private security costs all contribute to the general economic decline.      Next page


Previous pagePrevious View All Four Complete Mixed-Economy Graphs Open Review window


Next page