As documented in the film, “Inside Job” (2010), after years of deregulation and concentration, by 2008 US financial institutions were considered too big to fail — so large and interc0nnected that their failure could destabilize the entire global financial system. This state of affairs was said to create moral hazard, a tendency to take undue risks due to the expectation of bailouts.
Could a similar dynamic be at work in the domain of criminal justice? The graph below attempts to diagram what’s called America’s “theft-to-punishment inflection point.” What does it mean? Is the logic compelling?