AboutWarren D. Miller, CFA, ASA, CMA, CPA Expertise My in-depth knowledge of economics is confined to three sub-disciplines: Austrian economics, industrial organization, and evolutionary economics. Other questions dealing with macroeconomics, the traditional neoclassical paradigm, labor economics, environmental economics, agricultural economics, health economics, and so on should go to those who have the appropriate expertise.
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Finally, please DO NOT ask for investment advice. I am not licensed to provide such advice. If you want such advice, check with your financial planner or other financial adviser.
Experience I work with Austrian economics (which is different in major respects from the traditional neoclassical model), industrial organization (which is about industry structure, conduct, and performance), and evolutionary economics (almost, but not quite, the economic analog of its biological counterpart) everyday in my work. I appraise closely-held businesses, provide exit-planning services, and offer high-level strategic analysis, advice, and clients to CEOs and owners of mid-sized businesses. Understanding, applying, and writing about these disciplines is an essential part of how I have made my living since 1993.
Organizations CFA Institute, Strategic Management Society, American Society of Appraisers, Institute of Management Accountants, Academy of Management, Culver Legion
Publications CFA Magazine, Strategic Finance, Valuation Strategies, Value Examiner, Journal of Advanced Property Economics, Harvard Business Review, American Fly Fisher, CFA Digest, CPA Expert, and Business Valuation Review, among others
Education/Credentials MBA - Oklahoma State (1991)
BBA - U. of Oklahoma (1975)
Chartered Financial Analyst designation (2006)
Accredited Senior Appraiser (2006)
Certified Management Accountant (1992)
Certified Public Accountant (1992)
Question i'm arguing the economic side for death penalty being that it is a cheaper alternative to life imprisionment, is that true
Answer Hi, Nikhil--
Thank you for your question, and thank you for using AllExperts.com.
Wow. That's a heckuva question. I doubt there's a clear answer to it because it's not just about economics. It's also about morality and politics. Still, let me argue against your side by asking the following questions:
1. Is the death penalty a "cheaper alternative to life imprisonment" no matter what the age of the accused is? In other words, is capital punishment a less-expensive choice than life imprisonment if the accused is, say, 75 years old?
2. What if the trial is short, rather than long? Doesn't than have impact on cost?
3. What if the accused agrees to plead guilty in order to avoid the death penalty? Think about the costs of (a) the trial that's avoided and (b) the cost avoided of the interminable appeals that don't happen but would if there were a guilty verdict and a death sentence.
4. Since capital punishment tends to be a function of state law, do you think it's possible that, in identical circumstances, but in different states, the death penalty might be less expensive in one state, while life imprisonment is less expensive in another?
5. Does your position change if the rate of violent crime changes? Think about Europe where murder occurs far less frequently than it does here. Maybe the least expensive alternative is to try to change people's behavior so that they don't do dumb things that expose them to the most severe penalty a society can impose.
6. Clearly, when we think about the cost of life imprisonment, we have to make assumptions about the cost in future years of incarcerating someone. That involves predicting the future. The one thing we can be sure of is that we'll be wrong in our predictions; the only question is by how much. I mean, we don't know today what those future costs are going to be. Are prison costs rising more rapidly, more slowly, or about the same as costs in the economy as a whole? Does your answer change in states where there is inmate crowding and the states have to build new prisons (which, I read, are fearfully expensive)?
Nikhil, as I hope you can see, I, for one, believe the answer to your question can be whatever you want it to be. But I also believe that, no matter what your answer is, you would be well-advised to consider each of the questions I raised above. I'm sure there are others that would come to mind if I thought more about it.
But I don't think that's useful because there is NOT, in my opinion, a one-size-fits-all answer that will be accurate in each and every situation. Please understand that I'm not trying to cop out here. Far from it. But I am trying to show you just how tough your position is--indeed, how tough ANYONE's position is, no matter which side they're arguing--in this most vexing and difficult of questions. There are serious economic measurements here, and I hope you can see just how difficult--impossible, really, in my opinion--they are.
I hope I've been helpful. And I respectfully request that you take the time to provide feedback on the ratings request you will receive soon after you get this reply. I need to know whether or not I'm being helpful and constructive. That is my goal, but you and others who ask questions are the only ones who can make that call. I'd appreciate your feedback.
