Question

Applied Economics - The Institutional Framework

Who the Looting Ruins

'Seventeen years of work is gone,' said the owner of an Ecuadorean eatery.

By

The Editorial Board

June 4, 2020 7:37 pm ET

Luis Tamay is an immigrant with an Ecuadorean restaurant in Minneapolis. Zola Dias is the black owner of a clothing store in Atlanta. Sam Mabrouk has a denim shop in Columbus, Ohio. They're only a few of the people whom intellectuals overlook whenever they rationalize rioting or say that property destruction isn't violence.

"Seventeen years of work is gone," Mr. Tamay told (Links to an external site.)

the Minneapolis Star Tribune after his restaurant, El Sabor Chuchi, burned to the ground. When the rioting began, he stood watch. But last Friday he obeyed curfew, believing that the National Guard would control the streets. Then on Facebook (Links to an external site.)

he saw video of his restaurant on fire. He told the newspaper he didn't have insurance because it was too expensive.

Safia Munye, a Somali immigrant in Minneapolis, opened Mama Safia's Kitchen in 2018 with money saved for retirement. When the pandemic arrived, NPRreported (Links to an external site.)

, she couldn't afford both insurance and to pay her workers. She did the latter. Now the restaurant is wrecked, but she's hardly the intended target of George Floyd protesters. "My heart is broken. My mind is broken," she said. "I know I can't come back from this. But this can be replaced. George's life cannot. George's life was more important."

In Atlanta, Zola Dias lost more than $100,000 in goods from his clothing store, Attom. "I'm very emotional when I talk about it because I put my soul and life in this business," he told (Links to an external site.)

the Atlanta Business Chronicle. "I just want to tell people to go and vote. That's the only way to stop it and make a change."

In San Francisco, Grace Jewelers was ransacked. "I can't put a dollar estimate on it now," Paul Zhou, the owner's husband, told (Links to an external site.)

the Chronicle. "My wife is devastated." In Dallas, Rodolfo Bianchi's empanada shop was trashed. "It was emotionally heartbreaking to see all of your sweat, blood and tears just shattered," he said (Links to an external site.)

. "It wasn't anger, I was just broken."

King's Fashion in Philadelphia is a burned-out mess. "I don't know what to do right now," Helen Woo, a co-owner, told (Links to an external site.)

the Journal. "I built it up," said her husband, Sung. "And it's gone. My life is gone." Masum Siddiquee lost about $200,000 of merchandise from his Philly store, MN Fashion and Jewelry. "I have no money right now," he said.

"I lost everything in one night," said (Links to an external site.)

Sam Mabrouk, counting an estimated $70,000 in product stolen from his clothing shop in Columbus, Ohio. "That was my savings from 11 years of working. That's what hurts more than anything." In Milwaukee, Katherine Mahmoud's cellphone store was looted empty, which she said had nothing to do with what the Floyd protesters are fighting for. "I look just like them," she told (Links to an external site.)

the Milwaukee Journal Sentinel. "Why?"

Some of these businesses are raising funds to help put the pieces back together. Some might have insurance to cover at least a portion of the losses. But others might not survive, and many companies will go bust quietly, without making the newspapers. Contrast this heartache with the cavalier attitude shown by at least some intellectuals, who seem to think that firebombing a local South American restaurant is merely the persuasive language of the unheard.

• OPINION  (Links to an external site.)
• COMMENTARY (Links to an external site.)

Don't Call Rioters 'Protesters'

As in the 1960s, rioters aren't looking to make a political point. They're in it for the 'fun and profit.'

By Barry Latzer

June 4, 2020 1:55 pm ET

Though thousands of demonstrators have taken to the streets of cities across the nation to express their outrage over the death of George Floyd, many hundreds have engaged in mob violence and looting. Mr. Floyd's tragic death is, for them, a pretext for hooliganism.

We've seen this before, back in the bad old days of the late 1960s, when rioting became a near-everyday occurrence. Economists William J. Collins and Robert A. Margotallied (Links to an external site.)

an extraordinary 752 riots between 1964 and 1971. These disturbances involved 15,835 incidents of arson and caused 228 deaths, 12,741 injuries and 69,099 arrests. By an objective measure of severity, 130 of the 752 riots were considered "major," 37 were labeled "massive" in their destructiveness.

At the time, black radicals and some white leftists saw the riots purely as political protest. Tom Hayden, the well-known New Left leader, described the violence as "a new stage in the development of Negro protest against racism, and as a logical outgrowth of the failure of the whole society to support racial equality."

This analysis ignored the observations of witnesses on the scene. Thousands of rioters in the 1960s and early 1970s engaged in a joyful hooliganism—looting and destroying of property with wild abandon—that had no apparent political meaning. In the Detroit riot of July 1967, one of the era's most lethal (43 people died in four nightmarish days of turmoil), the early stage of the riot was described by historian Sidney Fine as "a carnival atmosphere," in which, as reported by a black minister eyewitness, participants exhibited "a gleefulness in throwing stuff and getting stuff out of the buildings." A young black rioter told a newspaper reporter that he "really enjoyed" himself.

Analysts of urban rioting have identified a "Roman holiday" stage in which youths, in "a state of angry intoxication, taunt the police, burn stores with Molotov cocktails, and set the stage for looting." This behavior is less political protest than, in Edward Banfield's epigram of the day, "rioting mainly for fun and profit." We are seeing some of the same looting and burning today, often treated by the media as mere exuberant protest.

Analyses of the riots that pinned blame on white bias and black victimization buttressed the protest theory. Such explanations received official sanction in the report of the influential National Advisory Commission on Civil Disorders established by President Lyndon Johnson in 1967, and headed by Illinois Gov. Otto Kerner. The Kerner Report (Links to an external site.)

famously declared that "white racism is essentially responsible for the explosive mixture which has been accumulating in our cities since the end of World War II." While not explicitly calling the riots a justified revolt by the victims of white racism, the Kerner Report certainly gave that impression.

Today we have the Black Lives Matter movement, which claims that police racism is the heart of the problem and calls for "defunding" police departments. Its apologists ignore the pressing need to protect black lives in communities where armed violent criminals daily threaten law-abiding residents.

A seeming oddity of the disturbances of the late '60s and early '70s is that they failed to materialize in many cities. An analysis of 673 municipalities with populations over 25,000 found that 75% of them experienced no riots. Even within riot-torn cities it is estimated that 85% or more of the black population took no part in them. Although they've gotten little or no media coverage I expect we will see comparable enclaves of tranquility today.

One possible explanation for why some cities explode with violence and others don't is contagion theory: the tendency of people to do what their friends are doing. Once the rocks and bottles start flying in a neighborhood, it becomes tempting to join in. Youths, who played a major role in the turbulence, are particularly susceptible to peer influence. Consequently, when teenagers and young men begin rampaging, the situation often quickly escalates. No one wants to miss the party. As more young people join in, what begins as a manageable event can rapidly spiral out of control.

Closely related to the contagion theory is the threshold—or, more popularly, the "tipping point"—hypothesis. Once a certain number of rioters have become engaged, this view holds, those who had preferred to stay on the sidelines will be motivated to jump in. While imitation plays its part here too, the size of the event in itself becomes the crucial determinant of the ultimate magnitude of the riot.

Of course, a peaceful situation can quickly descend into mayhem in the presence of provocateurs. Back in the '60s, a new generation of young black militants, such as Stokely Carmichael and H. Rap Brown, traveled around the country making incendiary speeches, unabashedly endorsing black revolution. Today we have antifa and various anarchist groups using social media and encrypted messages to organize the violence effectively but anonymously.

Certainly, there are those who honestly believe that America's police are racist and in need of fundamental reforms. They are mistaken, but they should have ample opportunity to express their views peacefully. There should be no confusing such protesters, however, with looters, arsonists and those who would kill police officers. They deserve a different name: criminals.

Mr. Latzer is a professor emeritus at New York's John Jay College of Criminal Justice and author of "The Rise and Fall of Violent Crime in America."

Discuss the opportunity costs

Answer 1

Opportunity cost is the loss of other alternative when one alternative is choosen