Deregulation, Crime & Economic Liberalism

Updated: Jun 30, 2020

I previously theorized that economic liberalism was the leading cause of increased urban crime rates in Latin America during the 1990s. Interestingly, there are various similarities between what happened then with what is happening in the United States today.

In the 1990s an influx of liberal economic policy transformed the economic landscape of many Latin American countries in two ways; economies were significantly boosted by privatization and deregulation of the market, while inequality and disparities between the distribution of wealth increased. In both Buenos Aires and Lima, there was a sudden - distinct - shock, which caused division between economic classes, higher poverty, and exponential spikes in rates of urban violence.

Seem familiar?

In these recent times of political and social unrest, some equities tend to correlate higher. I noticed Smith & Wesson Brands Inc. a firearm and outdoor product maker (up 80% since the middle of May). This company manufactured handguns for soldiers in the Civil War & also was the brand behind Clint Eastwood's character Dirty Harry. They recently re-branded themselves to the "American Outdoor Brands, Corp". This stock will continue to edge higher in the short-term as uncertainty continues around police reform.