* I am considering committing a crime that is worth X to me.
* The price (punishment) for this crime is Y.
* I only have to pay the price if I'm caught and convicted, both of which have some probability between 0 and 1.
So the effective price for committing this crime is Y multiplied by the probability I'm caught and convicted.
If
X > P(caught) * P(convicted) * Y
Then I should commit the crime. Otherwise, it's not worth it.For financial crimes, it's safe to say that P(caught) and P(convicted) get lower and lower the richer and more powerful you become. You have access to the best accountants and attorneys, making certain financial crime reliably profitable and increasingly attractive.
Therefore it stands to reason that while there is a line past which a punishment becomes excessive, an effective punishment must lead would-be criminals to decide that the risk is not worth it. Until this is the case, we have to either increase P(caught & convicted), or else increase Y; we can't do neither.
Probably increasing both is best; an increase in fines (Y) could fund the increased enforcement (P) necessary. Good luck passing those laws, though.
A home burglary where no one's present is non violent. Do you think that should be punished lightly? It causes orders of magnitude less damage than a lot of financial crime.
From https://www.law.cornell.edu/wex/burglary
Typically this means you've broken into a domicile (sometimes lesser charges of Burglary exist for non-domicile, eg a vacant commercial building). If you break into someone's home, at night, while it's occupied, the law presumes you intended to do violence.
This presumption is usually correct!
Well yes. But I explicitly said "no one's present". And it usually happens during the day where I live, because that's when people work.
Someone stealing my life savings will have a much greater impact than someone punching me in the face.
Financial crimes, aka crimes rich people commit, to be richer, deserve much more harsh treatment that we give them today. You can go to jail for years for shoplifting (aka crimes poor people commit) few thousand dollars worth of goods. People should be much more often sentenced to go to jail for life for committing millions of dollars worth of financial crimes.