How does white collar crime impact on the economy?
White collar crime impacts the economy by increasing the cost of doing business and raising prices for the consumer. White collar crime decreases the efficiency of doing business and has a negative impact on the bottom line of a company. In some extreme cases (Enron) white collar crime can bankrupt companies and / or have a major impact on the stock market. When white collar crimes are caught, new regulation can restrict business and lower efficiency even more. The only difference between white collar crime and ‘real’ crime is that there is normally not a single identifiable victim and there was no threat or use of violence. Most scams / cons, fraud, corruption, and theft fall under ‘white collar crimes.’ If anything, white collar crimes are the most damaging crimes to the economy since they prevent business from taking place in a fair market.
