Gangs Affected By Bad Economy

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It is not just corporations and individuals that have been hit by the recession. Many street gangs have been feeling the pinch of the economic crisis. The impact has worked its way up the food chain to gangs and various organized crime. It won't be long before the organized criminal groups lobby the government for a share of the bailout.


Just like the delicate balance between predator and prey, when the prey are starving, so too are the predators. In this case, the prey are the victims of organized crimes. With national unemployment exceeding 9%, most potential victims of organized and gang-related crimes don't have any money to buy luxuries, such as HDTV. They have no money in their wallets. So when victims get mugged, the gangs come away with less. And worse, as victims no longer have a job to go to, so they stay home more. That makes it harder for your average mugger to get their share of victims in a night. Gang revenues are down, costs are up.

The decline in car sales is not only hurting the automobile manufacturers. There are less new cars on the road than ever before, which means less new cars to steal. Carjackings are way down compared to last year, and the trend shows no sign of changing soon. Chop shop revenues are similarly ehibiting negative growth trends year over year.

The numbers for home burglary are equally disappointing.With all the foreclosures going on, it can be hit and miss for the average burglar. Often, they break into an empty home, and come out with nothing. When they do find an inhabited home, the occupants are more likely to be home, since they are unemployed. And with consumer spending down, there is less in those homes to steal. So overall the burglars are getting less loot, as can be seen when you visit any pawn shop in the area. And if you see a gold rolex while you are looking, please let me know, I want it back!

Of course when you take into account the Bernard Madoff scandal and the AIG bonuses, you see criminal achievements in the billions. It is more than enough to give your average street gangs an inferiority complex. They cannot compete with the likes of your common investment banks and insurance companies for the level of ill-gotten gains. When compared to such giants, it is enough to make the average street gang member want to give up crime as a lost cause.

The effects on the crime industry are substantial. I recently heard of an LA street gang holding a bake sale to raise funds for ammunition. It is a sad day when your common street gangs are running out of bullets to shoot each other with. We need to move fast to drop ship some care packages and soon!

On a positive note, unemployment rates in street gangs are up, which means that gangs are laying off their members. We think that many gangs are outsourcing and using offshore bullies and thugs to cut costs. Recently when two rival new york gangs had a rumble, it was between outsourced thugs in China and India. Due to the extreme distance, the rumble was limited to a conference call, with many profanities being shared. After making little progress, the rumble was declared a draw.

Is this the future for street gangs? Do you see a recovery in the organized crime industry? Please add your comments below: