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Spending on prisons is at an all time high in the United States. Early prevention of delinquency and later offending represents a viable public policy option. This article reviews the highest-quality research on the economic benefits and costs of early prevention compared with imprisonment.
Spending on prisons is at an all time high in the United States. Early prevention of delinquency and later offending represents a viable public policy option. This article reviews the highest-quality research on the economic benefits and costs of early prevention compared with imprisonment.
Spending on prisons is at an all time high in the United States. Early prevention of delinquency and later offending represents a viable public policy option. This article reviews the highest-quality research on the economic benefits and costs of early prevention compared with imprisonment.
2011 SAGE Publications Reprints and permission: sagepub.com/journalsPermissions.nav DOI: 10.1177/0032885511415236 http://tpj.sagepub.com 415236TPJ91310.1177/00328855114152 36Welsh and FarringtonThe Prison Journal 2011 SAGE Publications Reprints and permission: sagepub.com/journalsPermissions.nav 1 Northeastern University, Boston 2 Cambridge University, Cambridge, UK Corresponding Author: Brandon C. Welsh, 360 Huntington Avenue, Boston, MA 02115 Email: b.welsh@neu.edu The Benefits and Costs of Early Prevention Compared With Imprisonment: Toward Evidence-Based Policy Brandon C. Welsh 1 and David P. Farrington 2 Abstract Spending on prisons is at an all time high in the United States. These costs are proving unsustainable, causing a substantial drain on state and local govern- ment budgets and diverting scarce resources from critical sectors like educa- tion, health, and welfare. Early prevention of delinquency and later offending represents a viable public policy option to the present focus on punishment, and some governments are beginning to take notice. This article reviews the highest-quality research on the economic benefits and costs of early preven- tion compared with imprisonment. It finds that there is a growing body of scientific research that shows that early prevention is an effective and worth- while investment of public resources; a number of landmark, comprehensive economic studies demonstrate the value of early prevention and other alter- natives compared to imprisonment; and a new crop of research studies are forging important insights on the economics of prison and alternative strate- gies. Implications for policy are discussed. Keywords early prevention, effectiveness, benet-cost analysis, evidence-based policy Welsh and Farrington 121S We begin this article with what may very well be the best example in this coun- try of government spending priorities shifting from prison to prevention. In 2007, the Washington State legislature abandoned plans to build one of two large-capacity prisons and in its place approved a sizeable spending package (US$48 million) on evidence-based crime prevention and intervention pro- grams (Drake, Aos, & Miller, 2009). What makes this story even more impor- tant is that it was a political decision that was made on the basis of scientific research. This research showed that other strategies were more effective than incarceration and would generate substantial financial savings to the Washington State government and taxpayers. Many scholars, policy makers, practitioners, and even some politicians, know by now the pioneering research undertaken by Steve Aos and his col- leagues at the Washington State Institute for Public Policy. Fewer know about how this research has influenced policy. In 1997, the Washington State legis- lature commissioned the institute to assess the effectiveness and economic efficiency of a range of crime prevention and criminal justice programs with the aim to identify interventions that reduce crime and lower total costs to taxpayers and crime victims (Aos, Barnoski, & Lieb, 1998, p. 1). The research- ers referred to their methodological approach as bottom-line financial anal- ysis, which they considered to parallel the approach used by investors who study rates of return on financial investments. The research began with a litera- ture review of high-quality programs. A five-step analytical model was then used to estimate each programs economic contribution. 1 What started out as a highly rigorous yet fairly modest policy research initiative soon turned into the most comprehensive approach to develop evidence- based crime policy in the United States and one revered by other states and even countries (Aldhous, 2007; Greenwood, 2006). Following the institutes first set of reports, the legislature authorized a number of system-level randomized controlled trials of the most effective and cost-beneficial juvenile and adult intervention programs. The results of these trials helped to refine local prac- tice and service delivery. By 2006, the institute had systematically reviewed and analyzed 571 of the highest-quality evaluations of crime prevention and criminal justice programs, estimated the benefits and costs of effective pro- grams, and projected the degree to which alternative portfolios of these pro- grams could affect future prison construction needs, criminal justice costs, and crime rates in Washington (Aos, Miller, & Drake, 2006, p. 1). This most recent work was commissioned by the legislature to address the projected need for two new state prisons by 2020 and possibly a third by 2030. Based on a moderate-to-aggressive portfolio of evidence-based programs (i.e., US$63-US$171 million expenditure in the first year), it was found that a 122S The Prison Journal Supplement to 91(3) significant amount of future prison construction costs could be avoided, about US$2 billion saved by taxpayers, and crime rates lowered slightly (Aos et al., 2006, p. 16). Let us be clear, the above researchand this article for that matterdoes not say that prisons cannot reduce crime or that states should let offenders out wholesale. Instead, it says in no uncertain terms that there are a number of worthwhile alternatives to prison that can help state governments lower their spending on prisons, improve the rate of return on spending on crime preven- tion and criminal justice programs, and lower the burden of crime on its citi- zens. Neither Aos and his colleagues nor the two of us just discovered this. The scientific evidence on the effectiveness and economic efficiency of crime prevention and intervention programs compared to prison has been accumulat- ing for years. This started with landmark comprehensive studies carried out in the 1980s and 1990s. It has continued to this day with a new crop of high- quality studies by early childhood researchers, criminologists, and economists and at policy research centers like the Washington State Institute for Public Policy and the Vera Institute of Justices cost-benefit analysis unit. In this article, we review the evidence base for the monetary costs and ben- efits of early prevention compared to imprisonment. This comprises three main topical areas of research: early childhood programs, landmark compre- hensive studies, and a new crop of studies that are forging important insights on the economics of prison and alternative strategies. It is not possible to cover every study. Instead, we focus on the highest-quality research studies. In the case of evaluations, this includes experimental and rigorous quasi-experimental designs. Wherever possible, we also draw upon the most rigorous literature reviews (i.e., systematic and meta-analysis) that include only high-quality projects. This ensures that our conclusions are based on the best available evidence. We begin with a brief overview of the costs of imprisonment. Imprisonment Costs In their recent report entitled The High Budgetary Cost of Incarceration, the Center for Economic and Policy Research estimates that federal, state, and local governments spent nearly US$75 billion on corrections in 2008. This trans- lates into about US$700 for each household in the country. A large majority of this expenditure goes toward incarceration. State and local governments account for a little more than 90% of these expenditures (Schmitt, Warner, & Gupta, 2010, p. 10). These costs have gone up considerably in recent years. In the last decade, from 1999 to 2008, spending on corrections increased by more than one fifth (21%) or US$13 billion (in inflation-adjusted dollars). In the Welsh and Farrington 123S past two decades, spending on corrections has more than doubled, from about US$37 billion (in inflation-adjusted dollars) in 1989 (Schmitt et al., 2010). So high are these costs that in Missouri, for example, judges at the sentenc- ing phase of trials now consider the monetary costs of different sanctions (Davey, 2010). Most concerning is that this level of spending on prisons across the country is causing a substantial drain on state and local government budgets and diverting scarce resources from critical sectors like education, health, and welfare. According to Wexler (2010), Corrections expenditures compete with and diminish funding for education, public health, public safety, parks and recreation, and programs specifically designed to reduce the prison popula- tion. Only state spending on Medicaid outpaced spending on corrections dur- ing the past two decades (Moore, 2009). Interestingly, Ellwood and Guetzkow (2009) found that state spending on corrections had an adverse effect on spend- ing on welfare, but not on other budget categories such as education and health. In the next part, we discuss the public policy method of economic analysis. Economic Analysis Economic analysis aims to provide a fair and reliable assessment of the value for money of a crime prevention or criminal justice program or policy. It can be described as a policy tool that allows choices to be made between alterna- tive uses of resources or alternative distributions of services (Knapp, 1997, p. 11). It is a key part of evidence-based crime policy (Mears, 2010). As Drake et al. (2009, p. 194) note, While determining whether a program reduces crime remains the necessary first condition for rational public policy making, an economic analysis constitutes the necessary additional condition for iden- tifying viable and fiscally prudent options. Many criteria are used in economic analysis. The most common is efficiency or value for money (achieving maxi- mum outcomes from minimum inputs). Of the two main techniques of economic analysisbenefit-cost and cost- effectiveness analysisonly the former allows for an assessment of both benefits and costs. A cost-effectiveness analysis can be referred to as an incom- plete benefit-cost analysis. This is because no attempt is made to estimate the monetary value of program effects (benefits or disbenefits), only resources used (costs). For example, a cost-effectiveness analysis might specify how many crimes were prevented per US$1,000 spent on a program. Another way to think about how benefit-cost and cost-effectiveness analyses differ is that cost-effectiveness analysis may help one decide among competing program models, but it cannot show that the total effect was worth the cost of the pro- gram (Weinrott, Jones, & Howard, 1982, p. 179), unlike benefit-cost analysis. 124S The Prison Journal Supplement to 91(3) A benefit-cost analysis is a step-by-step process that follows a standard set of procedures. There are six main steps: (1) define the scope of the analysis, (2) obtain estimates of program effects, (3) estimate the monetary value of costs and benefits, (4) calculate present value and assess profitability, (5) describe the distribution of costs and benefits (an assessment of gains and losses of program participants, the government or taxpayer, and crime victims), and (6) conduct sensitivity analyses by varying the different assumptions made (Barnett, 1996). 2 Two other key features of economic analysis require brief mention. First, an economic analysis is an extension of an outcome or impact evaluation and is only as defensible as the evaluation on which it is based. David Weimer and Lee Friedman (1979, p. 264) recommended that economic analyses be lim- ited to programs that have been evaluated with an experimental or strong quasi-experimental design. Second, many perspectives can be taken in mea- suring program costs and benefits. Some benefit-cost analyses adopt a society- wide perspective that includes the major parties that can receive benefits or incur costs, such as the government or taxpayer, crime victim, and program participant. Other analyses may take a more narrow view, focusing on one or two of these parties. The decision about which perspective to take has impor- tant implications for evaluating the program, particularly if it is being funded by public money; that is, if conclusions are to be drawn about the monetary benefits or costs of a program to the public, the benefits or costs must be those that the public will either receive or incur. In reporting on the benefit- cost findings of the studies reviewed here, we have used, as far as possible, a middle-of-the-road approachfocusing on the costs and benefits for the government or taxpayer and crime victims. Saving Children From a Life of Crime Early childhood programs have wide appeal across a large spectrum of con- stituencies. These programs help societys most vulnerable members. Their explicit aims include the betterment of childrens immediate learning and social and emotional competencies and the improvement of childrens suc- cess over the life course. Also, they are implemented at a time when children are most impressionable and, hence, receptive to interventions (Duncan & Magnuson, 2004). In our book, Saving Children from a Life of Crime (Farrington & Welsh, 2007), we proposed a risk-focused, evidence-based strategy to make the early prevention of delinquency and later offending a top priority of U.S. crime policy. We called for the creation of a national council to take the lead on Welsh and Farrington 125S early crime prevention. It could provide technical assistance, skills, and knowl- edge to state and local agencies in implementing prevention programs; provide funding, continuity, coordination, and monitoring of local programs; provide training in prevention science for local people; and maintain high standards for evaluation research. This was not some pie-in-the-sky idea. It is a well-developed practice that is used with much success in Canada, Australia, and many Western European countries. Even more important, it is founded on two separate but interrelated research developments that focus on the importance of early intervention pol- icy and programs to improve childrens life chances and prevent them from embarking on a life of crime. First, after decades of rigorous research, a great deal is known about the early causes of delinquency and later offending. Second, there is a growing body of high-quality scientific evidence on the effec- tiveness of early prevention programs designed to tackle these causes. Included in this evidence base are a number of programs that have carried out benefit- cost analyses, which show that early crime prevention pays back program costs and produces substantial returns to society. Other meta-analyses and system- atic reviews include the same programs (see Manning, Homel, & Smith, 2010; Piquero, Farrington, Welsh, Tremblay, & Jennings, 2009). One of these programs is the famous Perry Preschool Project (Schweinhart et al., 2005). Carried out in Ypsilanti, Michigan, 123 children were allocated (approximately at random) to experimental and control groups. The experimen- tal children attended a daily preschool program, backed up by weekly home visits, usually lasting 2 years when children were aged 3 and 4 years. The aim of the plan-do-review program was to provide intellectual stimulation, to increase thinking and reasoning abilities, and to increase later school achievement. The program had long-term benefits, extending up to age 40 (the latest follow-up). Compared to the control group, program group members had sig- nificantly fewer lifetime arrests for violent crimes (32% vs. 48%), property crimes (36% vs. 58%), and drug crimes (14% vs. 34%), and were significantly less likely to be arrested 5 or more times (36% vs. 55%). Improvements were also recorded in many other important life-course outcomes. For example, sig- nificantly higher levels of schooling (77% vs. 60% graduating from high school), better records of employment (76% vs. 62%), and higher annual incomes were reported by the program group compared to the controls. These improvements translated into substantial dollar savings. A benefit- cost analysis at age 40 found that the Perry program produced just more than US$17 of benefit per dollar of cost, with three quarters (76%) of this being returned to the general publicin the form of savings in crime, education, 126S The Prison Journal Supplement to 91(3) and welfare, and increased tax revenueand 24% benefiting program partici- pants. James Heckman and his colleagues (Heckman, Moon, Pinto, Savelyev, & Yavitz, 2010) reanalysis of the Perry program found a slightly lower but still very high return of US$7-US$12 of benefit per dollar of cost. Like Perry, the Child-Parent Center program in Chicago provides disad- vantaged children, aged 3 to 4, with a high-quality, active learning preschool supplemented by family support. It also provides children with the educational enrichment component into elementary school, up to age 9. Begun in 1967, this program is the second oldest federal preschool program in the United States (after Head Start) and the oldest extended early intervention program. It is located in 24 centers in high-poverty neighborhoods across Chicago. A rigorous nonrandomized controlled design was used to evaluate the pro- gram, with a sample of more than 1,500 children. By age 24, the experimental groupcompared to their control counterpartshad significantly lower rates of felony arrest (17% vs. 21%), lower rates of incarceration (21% vs. 26%), and higher rates of school completion (71% vs. 64%; Reynolds et al., 2007). A benefit-cost analysis of the program, which included some outcomes measured up to age 21 (crime was measured at age 18), found that, for every dollar spent on the program, more than US$7 was saved to society. These savings took the form of averted government expenditures on remedial education and the jus- tice system as well as increased economic well-being of program participants (Reynolds, Temple, & Ou, 2003). The latter benefit accounted for the largest share (46%) of total monetary benefits; savings to crime victims and the crimi- nal justice system accounted for the next largest share (28%) of benefits. Another program, the Carolina Abecedarian Project, targeted children born to low-income, multirisk families. A sample of 111 children aged 3, mostly African American (98%), were randomly assigned either to receive full-time preschool childcare (focusing on the development of cognitive and language skills) or not. Families of children in both the experimental and control groups received supportive social services as needed (Campbell, Ramey, Pungello, Sparling, & Miller-Johnson, 2002). At age 21, 104 of the participants were interviewed, and it was found that fewer of the experimentals compared to the controls (but not significantly so) reported being convicted for a misde- meanor offense (14% vs. 18%) or a felony offense (8% vs. 12%) or had been incarcerated (14% vs. 21%). Also, significantly fewer of the experimental participants were regular marijuana users, significantly fewer had become a teenage parent, significantly more had attended college or university, and they had significantly higher-status jobs. A benefit-cost analysis found that, for every dollar spent on the program, US$2.50 was saved to society (Barnett & Masse, 2007). Welsh and Farrington 127S Head Start, long considered the nations most important early childhood program, which reaches about half of all impoverished children, has been the subject of a number of evaluations and benefit-cost analyses. A large-scale study of the long-term effects of Head Start, by Eliana Garces and her col- leagues (Garces, Thomas, & Currie, 2002), found that children who attended Head Start (at ages 3 to 5) were significantly less likely to report being arrested or referred to court for a crime by ages 18 to 30 compared to their siblings who did not attend the program. In one of the first benefit-cost analy- ses, Janet Currie (2001) found that Head Starts short- and medium-term ben- efits could offset between 40% and 60% of its costs and the addition of a small fraction of long-term benefits would make the program a worthwhile public investment. Jens Ludwig and Deborah Phillipss (2008) review of the benefits and costs of Head Start, which drew upon the first report of the programs national randomized experiment (the national impact study) and other studies, concluded that the program was a worthwhile investment of taxpayer dollars in both the short- and long-term. An analysis of the final report of the national impact study by the National Forum on Early Childhood Policy and Programs (2010) drew attention to key gains experienced by Head Start children com- pared to their control counterparts and the need for a long-term benefit-cost analysis of the program based on experimental data. Benefit-cost analyses of a number of other early prevention programs tar- geted at different stages of the life course provide further evidence of the profit- ability of investing in this approach. Two of these programs include the Nurse-Family Partnership (Eckenrode et al., 2010) and the Seattle Social Development Project (Hawkins, Kosterman, Catalano, Hill, & Abbott, 2008). Benefit-to-cost ratios of these programs range from 2.9:1 to 4.1:1, depending on who conducted the analysis. Landmark Comprehensive Studies The individual benefit-cost analysis studies reviewed above provide important insight on the economic efficiency of early childhood programs. What is per- haps a more pressing issue facing policy makers today is an understanding of economic efficiency of competing policy options; that is, compared to other crime prevention and control strategies, which one provides the best economic return for society? This section examines the first generation of comprehensive studies that investigated this crucial policy question. The most well known of these studies was conducted by the RAND Corporation (Greenwood, Model, Rydell, & Chiesa, 1998). It assessed the cost-effectiveness (i.e., serious crimes prevented per US$1 million spent, using 128S The Prison Journal Supplement to 91(3) 1993 dollars) of Californias new three-strikes law compared with four pre- vention and intervention strategies with demonstrated efficacy in reducing crime: a combination of home visits and day care, parent training, graduation incentives, and monitoring and supervising delinquent youths. Each of these alternatives was based on well-known experiments with small to moderately large samples. The first step in the modeling process was the estimation of program costs and crime reduction effectiveness of the four alternative interventions. In order to conduct fair comparisons among these interventions and with the three- strikes law, three main penalties were assigned to the former. These were (1) targeting: the proportion of the population targeted by the program who are likely to become involved in criminal behavior (e.g., children of low-income, teenage mothers for the home visit/day care program), (2) decay: the loss of effectiveness after treatment ends, and (3) scale-up: the decrease in program effects from expanding the program statewide (Greenwood et al., 1998, p. 16). The study found that parent training and graduation incentives were the most cost-effective of the five programs, whereas home visiting/day care was the least cost-effective. The number of serious crimes prevented per US$1 million was estimated at 258 for graduation incentives, 157 for parent training, 72 for delinquent supervision, 60 for the three-strikes law, and 11 for home visiting/ day care. 3 It is important to comment briefly on the poor showing of the home visiting/day care program. The small number of crimes prevented per US$1 million is attributable to two key factors (a third factor is discussed below): first, the long-term delay in realizing an impact on crime, and, second, the high cost of delivering the services, particularly the day care component, which was esti- mated at US$6,000 per child per year over a 4-year period. John Donohue and Peter Siegelman carried out an equally rigorous thought experiment, which has some similarities to the Washington State Institutes comparative benefit-cost model. The authors set out to investigate whether the social resources that will be expended a decade or more from now on incar- cerating todays youngsters could instead generate roughly comparable levels of crime prevention if they were spent today on the most promising social programs (1998, p. 31, emphasis in original). These included a range of early prevention programs and the national Job Corps program, and most of the estimates were based on well-known experiments or quasi-experiments with small to large samples. The first step involved estimating the crime reduction and cost associated with a continuation of U.S. prison policy. On the basis of a 50% increase in the prison population over a 15-year period (assumed from the level in December 1993 and trends at the time), it was estimated that this policy would cost Welsh and Farrington 129S US$5.6 to US$8 billion (in 1993 dollars) and result in a 5% to 15% reduction in crime. The next steps involved estimating the percentage of the cohort of 3-year-olds who could be served by allocating the saved prison costs (the US$5.6 to US$8 billion) to the different social programs and then estimating the crime reduction benefits that could be achieved by selected programs under a range of targeting conditions (i.e., the worst 6% of delinquents, males only, and young Black males only). Two early prevention programs were selected: the Perry Preschool Project and the Syracuse University Family Development Research program (Lally, Mangione, & Honig, 1988). It is at this stage that the authors apply a scaling-up penalty of 50% to each program. This had the result of reducing Perrys crime reduction effectiveness from 40% to 20% and Syracuses effectiveness from 70% to 35%. In the final analysis, it was found that both early prevention programs could achieve reductions in crime that were within the range of what was expected from a continuation of the prison policy of the day (5% to 15%) even if they were allocated the lower-bound amount that would have been spent on prisons (US$5.6 billion). This was considered the worse-case scenario. In the best- case scenario, which did not include the scaling-up penalty and allocated the upper-bound amount of prison spending (US$8 billion), the Perry and Syracuse programs produced crime reductions of 21% and 26%, respectively. Daniel Nagin (2001) reexamined these two studies. Although he praised their innovative methods, one of his main concerns was that they failed to con- sider the full potential benefits of the early prevention programs. By its very nature, developmental crime prevention is designed to improve individual functioning across multiple domains. Indeed, this is precisely what evalua- tions of the included programs showed. But Greenwood et al. (1998) and Donohue and Siegelman (1998) only considered the benefits from lower rates of delinquent and criminal activity. Educational, employment, family, health, and other important benefits were not taken into account, which had the effect of greatly reducing the true economic return to society. This point is made clear in another RAND study by Lynn Karoly and her colleagues (1998). In the case of the Nurse-Family Partnership program, for example, which was used in the study by Greenwood et al., an analysis of the distribution of ben- efits accruing to government revealed that more than half (57%) of the bene- fits were caused by a reduction in welfare costs, almost one quarter (23%) were due to tax revenue from increased employment income, 20% were caused by a reduction in juvenile and criminal justice costs, and less than 1% were due to a reduction in health care services. These conclusions are based on a conser- vative benefit-cost analysis that found that, in the home visits program, bene- fits exceeded costs by a ratio of 4.1:1. A more recent benefit-cost analysis by 130S The Prison Journal Supplement to 91(3) Donohue (2009) embraces this view; he concludes that there is reason to believe that alternatives to incarceration might well be more socially attrac- tive than our current reliance on incarceration as the predominant crime- fighting strategy (p. 308). New Research A new crop of research has continued to investigate the crucial question of which policy option provides the best economic return for society, as well as to probe key economic issues central to this debate. For sure, the most impor- tant body of new research in this area is the Washington State Institute for Public Policys comparative benefit-cost model. Although work in this regard began in the late 1990s, it still remains cutting edge. This is due to ongoing refinements to the crime-based model, inclusion of additional outcomes (e.g., education, substance abuse, health), new analyses, and an expansion of its work with the support of the Pew Charitable Trusts to aid other states to identify evidence-based policy options to reduce crime and lower the taxpayer costs of the criminal justice system (Aos & Drake, 2010, p. 1). As noted previously, this research is already paying substantial dividends to the state government, local governments, and taxpayers in Washington State. Closely related to this research, a number of new benefit-cost analyses of standard prison and other sentencing alternatives demonstrate that prisons are not economically efficient (Bierie, 2009; Marsh & Fox, 2008; see also McDougall, Cohen, Perry, & Swaray, 2006). It is only when prisons are reserved for the most serious and violent offenders that their benefits begin to offset their operating costs (Marsh, Fox, & Hedderman, 2009). Another important line of research has involved the use of the methodol- ogy of public opinion polling known as contingent valuation, which has many advantages over conventional polling methods. The contingent valuation approach allows for the comparison of respondents willingness to pay for competing policy alternatives (Nagin, Piquero, Scott, & Steinberg, 2006, p. 629). In a large-scale study of public preferences for responses to juvenile offending in the Commonwealth of Pennsylvania, Nagin et al. found that the public values early prevention and offender treatment significantly more than increased incarceration. Households were willing to pay an average of US$126 in additional taxes on nurse home visitation programs to prevent delinquency compared to US$81 on longer sentences. Households were also willing to pay more in taxes for treatment than for longer sentences: US$98 versus US$81. At the state level, public support for the prevention option translated into US$601 million that hypothetically could be used to prevent delinquency com- pared to US$387 million for longer sentences for juvenile offenders. Welsh and Farrington 131S In another contingent valuation study to gauge the publics preferences for a range of alternative responses to crime, Cohen, Rust, and Steen (2006) found that the public overwhelmingly supported the increased spending of tax dol- lars on youth prevention programs compared to building more prisons. Public support for spending more taxes on drug treatment for nonviolent offenders as well as on police also ranked higher than support for building more prisons, but not as high as for youth prevention programs. Many other studies show public support for allocating money to early prevention rather than to building more prisons (see Cullen, Vose, Jonson, & Unnever, 2007). Recent studies on the costs of crime are also making important contribu- tions to assessing the benefits and costs of early prevention compared to prison. But it is important to note that high crime costs do not themselves suggest a policy solution. For this we need to carry out an economic analysis, prefera- bly a benefit-cost analysis. What these cost studies do is to provide information on the unit costs of crime as well as the order of magnitude of the problem. Mark Cohen and Alex Piquero (2009) estimated that the typical criminal career over the juvenile and adult years costs society between US$2.1 and US$3.7 million (in 2007 dollars). They also estimated the dollar costs of the associated problem behaviors of heavy drug use and dropping out of high school, bringing the total societal cost of a high-risk youth to US$2.6 to US$4.4 million. In a follow-on study that looked at the costs of crime across offender trajectories for a real-life cohort in Philadelphia, Cohen, Piquero, and Jennings (2010) found that the 200 high-rate chronic offenders cost society more than US$200 million (in 2007 dollars). Based on another real-life cohort of 500 Pittsburgh boys, Welsh and his colleagues (2008) conservatively estimated that this group caused a substantial burden of harm to society in the form of victimization costs, ranging from US$89 to US$110 million (in 2000 dollars). From an early age, the cohort was responsible for substantial crime victim losses, with these losses mounting in the teen years. Discussion and Conclusions This article reviewed the highest-quality research on the costs and benefits of early prevention compared to prison. It reaffirms the importance of economic analysis in the development of evidence-based crime policy. It finds that a growing body of economic analyses demonstrates that early crime prevention can be a sound investment of public resources and an economically viable alternative to prison. It also makes the case for more states to follow Washington States lead, by investing in high-quality outcome and economic evaluation research (to allow for valid comparisons among crime policy options), providing 132S The Prison Journal Supplement to 91(3) an agency to conduct this research and make it transparent and understand- able to legislators and their constituents (in the form of a nonpartisan research institute), and following through with the adoption of crime prevention poli- cies that are evidence-based. We recommend that the National Criminal Justice Commission adopt this benefit-cost model as the foundation of its efforts to promote sound, evidence-based policies. There are, of course, challenges to adopting early prevention as a policy for reducing crime. Some will argue that more attention needs to be paid to intervening with criminally involved populations, of which there is an impres- sive body of evidence-based programs (see Drake et al., 2009; Lipsey, 2009; Lipsey & Cullen, 2007). We do not dispute this. Indeed, one of us (Farrington) has long championed the research finding that it is never too early and never too late to intervene to reduce criminal offending (Loeber & Farrington, 1998, 2011). What is sorely needed is a much stronger focus on prevention in the early years to help ensure that there is a greater balance among prevention, treatment, and punishment. We recommend that the commission give due attention to the early prevention of criminal offending. Another challenge that confronts prevention is the worry by politicians that they may be perceived as soft on crime by supporting prevention instead of law and order measures. Politicians think that citizens are punishment oriented, in part, because of the shortcomings of traditional public opinion polling about crime. Lawmakers often predicate their decisions about sentencing based on flawed survey data. As shown above, the contingent valuation approach provides a more textured and useful illumination of the publics views of punishment and should be undertaken to better inform and support legisla- tors decisions. Yet another challenge is that the benefits from reduced crime will not be apparent for a number of yearsat least until children reach adolescence. This can conflict with the short time horizons of politicians; that is, programs that show results only in the longer term can be less appealing to those who have to face reelection every few years. One potential antidote to this situation is to educate politicians about the many other benefits from prevention that accrue to taxpayers in the interim. Crime prevention is often a spin-off benefit. There is also the challenge that primary responsibility for (and spending on) early crime prevention can fall between different government depart- ments or be located in the wrong place altogether. Peter Greenwood (2006) argues that Health and Human Services should be the lead federal department for early prevention, whereas Justice is the more appropriate department for serving the needs of high-risk and adjudicated youths. One argument in favor of Health and Human Services is that the benefits of early prevention are not Welsh and Farrington 133S restricted to crime but include many other aspects of a successful or healthy lifestyle, including education, employment, substance abuse, relationships, and mental health. The good news is that these challenges can be overcome. The economic analysis results reviewed here show that benefits from early prevention begin to accrue at an early age and cascade over multiple domains, that the public is supportive of prevention even to the point of being willing to spend more in taxes on it, and that legislators and other decision makers are beginning to real- ize that they can no longer afford to rely on prisons to reduce crime. What is needed now is the political will to cap prison spending and allocate greater resources to early prevention. It is time to get smart on crime. Acknowledgments We are grateful to the editors, Hiro Yoshikawa, Holly Schindler, and Frank Cullen for helpful comments. Declaration of Conflicting Interests The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article. Funding The author(s) received no financial support for the research, authorship, and/or pub- lication of this article. Notes 1. The first step of the model involves estimating each programs most likely practi- cal application within the states justice or early intervention systems (Aos, Bar- noski, & Lieb, 1998, p. 8). Step 2 looks at whether program results can be replicated in the state. Step 3 involves an assessment of program costs, estimated on the basis of what it would cost the Washington State government to implement a similar program (if the program was not already operating in the state). Step 4 involves monetizing each programs effects on crime. Savings to the criminal justice system and crime victims are estimated. The final step involves calculating the economic contribution of the program, expressed as a benefit-to-cost ratio. From this, pro- grams can then be judged on their independent and comparative monetary value. 2. 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Cost-effectiveness of teach- ing family programs for delinquents: Results of a national evaluation. Evaluation Review, 6, 173-201. Welsh, B. C., & Farrington, D. P. (2000). Monetary costs and benefits of crime pre- vention programs. In M. Tonry (Ed.), Crime and justice (Vol. 27, pp. 305-361). Chicago: University of Chicago Press. Welsh, B. C., Loeber, R., Stevens, B. R., Stouthamer-Loeber, M., Cohen, M. A., & Farrington, D. P. (2008). Costs of juvenile crime in urban areas: A longitudinal perspective. Youth Violence and Juvenile Justice, 6, 3-27. Wexler, H. K. (2010, January 20). An opportunity to reform the criminal justice system. Los Angeles Times. Retrieved from http://www.latimes.com. Bios Brandon C. Welsh is associate professor of criminology at Northeastern University and senior research fellow at the Netherlands Institute for the Study of Crime and Law Enforcement. He has written eight books, including The Oxford Handbook of Crime Prevention. David P. Farrington is professor of psychological criminology, Cambridge University. He is cochair of the Campbell Collaboration Crime & Justice Group as well as director of the Cambridge Study in Delinquent Development. He has published 50 books, monographs, and government publications and more than 400 articles on criminologi- cal and psychological topics. He received the Sellin-Glueck and Sutherland Awards of the American Society of Criminology.