Commentary Magazine


Topic: crime

New York GOP: Victim of its Own Success?

It was one of the great ironies of the 1992 presidential election that talk of a “peace dividend” contributed to Bill Clinton’s victory over George H.W. Bush by portraying Bush not as a failure, but as a success. As vice president and then as president, Bush presided over the American victory in the Cold War and the disintegration of the Soviet Union and its peaceful passage of power from Gorbachev to Yeltsin. Americans could attempt to fully turn their attention away from foreign policy, and thus away from the need to reelect Bush.

Along those lines, Charles Lane at the Washington Post had a very perceptive column last month arguing that when it came to crime, Republicans were victims of their own success. Lane wrote:

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Goldman Sachs Invests in Crime Reduction

Government continues to struggle to find solutions for many of our most pressing social problems: reducing homelessness, lowering incarceration rates, improving the performance of inner-city schools. Despite the constant stream of taxpayer money into these efforts, the results have been slow to come and unimpressive (with some notable exceptions, like the reduction in overall crime under Mayor Giuliani).

The New York Times reports today on a new public-private partnership between Goldman Sachs and a Rikers Island program that aims to reduce recidivism rates among adolescent prisoners. If it succeeds, Goldman profits off its initial investment in the program; if it fails, Goldman loses money:

In New York City, Mayor Michael R. Bloomberg plans to announce on Thursday that Goldman Sachs will provide a $9.6 million loan to pay for a new four-year program intended to reduce the rate at which adolescent men incarcerated at Rikers Island reoffend after their release. …

The Goldman money will be used to pay MDRC, a social services provider, to design and oversee the program. If the program reduces recidivism by 10 percent, Goldman would be repaid the full $9.6 million; if recidivism drops more, Goldman could make as much as $2.1 million in profit; if recidivism does not drop by at least 10 percent, Goldman would lose as much as $2.4 million.

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