Quote:
Originally Posted by CaberTosser
I call BS on the economic model of that theory. If said items were not stolen then the money not needed towards their replacement would then go to something else that drives the economy. Such money does not materialize out of nowhere, it must be earned. If thefts were reduced then insurance premiums would be lower and that money would still be circulating in the economy. Some people might not have the money to replace goods stolen from them; perhaps the item is only worth their deductible or perhaps said item isn't insured. How then does that benefit them?
What would improve the economy is if thieves didn't exist and instead had productive jobs. What would help the economy is if recidivist parasites who habitually prey on others were no longer drawing oxygen because it sure doesn't drive the economy to have them in prison (sure it offers some corrections jobs, but that just costs the taxpayer and businesses who could both do better things with the money)
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But, it was stolen. There is going to be money going somewhere.
I pay a lot of insurance yearly. Really a lot. If I have a boat, trailer, truck, kicker, gear, electronics, radar stolen I file a claim for ~$245,000.00. I win. They don't fight big claims too hard, especially with the proof they demanded for value prior to writing the insurance and taking my money.
Then Ford sells me a truck, Seaswirl a boat, Canadian tire, fishin hole, wholesale sports, Yamaha, Cabelas all get to sell me everything they sold me last time. They win. This has never happened to me. I just pay. The insurance company wins with me, so far knock on teak.
If I have a lawnmower stolen that is worth $1000 insurance hits me for $500 deductible, then the adjuster says the mower is only worth $650 so here is your $150, take it or leave it. Oh and by the way you are no longer claims free, so you lose that discount. Oh and because of the high rate of thefts in your area you insurance is going up. So obviously I do not claim, I am out $1000. So John Deer wins because I go back to them to buy another $400 riding mower for $1185 because 'the american dollar is kicking our butts, we had to adjust prices this year'.
SO John Deer and Insurance wins. Plus the crook wins.
The economic model is sound, you just have to contort your vision to see it lol.