Effect of Violence on Local Economies

Most of the communities plagued by violence are also economically depressed areas.  They are riddled with abandoned buildings, shuttered businesses, and a lack of job opportunities.  While many people throw up their hands at what they see as a lost cause, the truth is these communities can improve – they have many resources and a vast majority of residents and business owners who are willing to work hard to turn it around.  The single biggest thing that can turn these communities around is to stop the violence. 

 Businesses do not want to locate in areas where customers and employees are afraid to go.  Even if a business did decide to locate itself in a violent community, they would need to spend considerable money on security and insurance and would have a smaller pool of potential workers and customers making it much more difficult to succeed.  For businesses to be encouraged to invest in these communities, the communities first must be made safer.  In severely depressed areas in many different cities, studies have shown this dynamic– decreasing violence leading to new businesses, more customers, and fewer business costs (Lehrer 2000).

 And turning these communities around will also help to turn the economic plight of our cities around.  Decreasing the violence in these areas would lead to increased tax revenues from improved housing values and business growth. Making an investment in efforts to reduce violence is a wise investment for cities.

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