When we discuss the “cost” of a policy, we usually look at the state budget. But there is a social cost that doesn’t show up on a balance sheet until it’s too late. According to a new report by Scioto Analysis and released by This Land, raising Oklahoma’s minimum wage isn’t just a pay raise; it’s a $840 million annual dividend in avoided crime-related costs.
Here is how preventing crime saves Oklahoma nearly a billion dollars every single year.
The Heavy Price Tag of a Single Crime
Most of us think of the cost of crime as the value of a stolen laptop or a broken window. But economists at the RAND Corporation and Scioto Analysis look at the “Social Cost,” which includes:
- Victim medical expenses and lost wages
- Property damage
- The psychological “pain and suffering” of victims and their families
- The massive public expense of the justice system
When you add it all up, the numbers are eye-opening. A single larceny (theft) costs society about $3,000. But a single homicide? That carries a social cost of over $13.4 million.
The Power of “55”
The report estimates that a $15 minimum wage would lead to nearly 7,000 fewer crimes in Oklahoma annually. While the majority of those are property crimes like burglary or theft, 55 of those crimes are homicides.
In a state where the homicide rate has risen 63% since 2002, preventing 55 deaths isn’t just a statistic, it’s 55 families who don’t have to bury a loved one. From a purely economic standpoint, preventing those 55 tragedies alone accounts for roughly $743 million of the total savings.
The 94% Rule
Another surprising finding in the Scioto Analysis report is that over 94% of the avoided social costs come from the reduction in violent crime (homicides and robberies), even though they represent a small fraction of the total crimes prevented.
This tells us something critical: small shifts in behavior at the bottom of the wage scale have massive ripple effects at the top of the safety scale. By giving young people and low-wage workers a viable legal path, we aren’t just stopping shoplifting; we are fundamentally reducing the desperation that leads to the state’s most violent and costly tragedies.
A Dividend for Every Citizen
When $840 million in social costs are avoided, everyone wins. Less money is funneled into an over-capacity court and prison system. Fewer claims for theft and violence stabilize insurance premiums. Most importantly, more Oklahomans return home safely to their neighborhoods.
The Bottom Line
We often frame the minimum wage debate as a tug-of-war between “pro-worker” and “pro-business.” But the Scioto Analysis data suggests it’s actually a “pro-safety” policy.
When we raise the minimum wage, we aren’t just paying for labor, we are buying a safer Oklahoma. We are investing in a future where $840 million stays in the pockets and the peace of mind of our communities, rather than being swallowed up by the consequences of poverty-driven crime.
To learn more and read the whole report, click here.
