Common situations that many communities are wrestling with are increasing levels in crime. Once safe communities now have to worry about some of the problems that used to be isolated to dense urban areas such as drugs, homicides and gun violence. In many ways these communities were unprepared for an upsurge in criminal activity causing many of the negative side effects that correspond with high crime rates.
As crime levels increase many retail businesses within the community will simply close and relocated elsewhere. This is because the environment for merchants to conduct business has become more dangerous, potentially affecting their profit margins. To remain in business means that you must protect your bottom line at all costs, even if you have to relocate to another community due to high crime rates.
As the different businesses leave the community, the overall unemployment rate will rise. When this occurs the people in the community have less disposable income causing other businesses to have trouble staying afloat leading to even more layoffs.
Successful People Leave
A community that is being affected by high crime rates means that those professionals who are in the higher income brackets will leave. This is because the high crime rate is bringing more criminals to the area, causing these professionals to find communities where they will feel safer.
Tax Revenues Decline
As businesses and many professionals leave the community the tax revenue of the local government declines. Since they both are paying property taxes, income taxes and sales taxes, the local government will miss three potential streams of income tax revenue. This will cause a shortfall in their budget.
As the tax revenue of the local government declines there is an inevitable reduction in services. This means that many of the citizens who remain will be dealing with less police, water and other basic services because the government does not have the money to provide them. This effectively causes the quality of life within the community to decline further and crime rates to rise higher.
As more people leave the community, there are many abandoned houses left behind because former residents can not sell their homes. They find it easier to abandon the property rather than continue owning it. This causes many drug addicts and squatters to move into the abandoned properties, bringing in a lower element of society.