Question

1) Why does crime fall when sentences are increased for crimes committed?

2) How does crime indirectly effect government program spending?

Answer 1

1) The aim of increasing sentences is removing opportunities from criminals by locking them up for long terms. Also, criminals are feared about the jail term and high penalty. If any criminal does light crime, long-term sentence gives them higher opportunity cost. But increased sentence fall crime up to certain limit.  

2) If there are more crimes in a country, the number of criminals get increased. So the government has to increase expenditure for maintaining this higher number of criminals. And also the government has to spend on constructing a new jail and maintain the existing. So increase crime indirectly increase government spending.