A Tiny Fraud that Costs Billions

Today WBUR's Here and Now interviewed Rachel Shteir, author of a new book exploring shoplifting from historical, psychological, and philosophical points of view. To listen to the interview and read an excerpt of the book, click here.

Every year, shoplifting costs retailers billions, says Rachel Shteir, author of The Steal: A Cultural History of Shoplifting. Here are a few more facts she compiled, in her comprehensive exploration of this widespread but ill-understood crime:

• In 2009, a survey estimated shoplifting losses at $11.69 billion annually. (source: University of Forida National Retail Security Survey)
• Shoplifting increases the price we pay for goods every year by about $400.
• In 2008, an estimated 1,000,000 shoplifting offenses were committed. (source: Dept. of Justice survey, "Uniform Crime Reports")
• In 2008, shoplifting stats spiked in some cities, climbing 18.7% in Long Beach, CA and 40.6% in L.A. (source: UCR)
• Store security catches an estimated 1 in 48 incidences of shoplifting. (source: National Association for Shoplifting Prevention)

Retailers and private security companies are reluctant to talk about this epidemic, as we learned when our own Thomas Humphreys, PI reported on shoplifting for Marketplace two years ago. (Gumshoe Finds Who's Got Sticky Fingers, Marketplace, Oct. 2009) We also learned that even though many retailers may feel that an economic downturn fuels people's "need" to steal, the facts are more difficult to pin down.
Our law enforcement sources insist that shoplifters aren't usually stealing out of need, and Shteir agrees. She says their motives are far more complicated, and differ widely. Some steal out of a sense of perceived grievance: I deserve this thing. Others are looking for a dose of excitement or danger: Think Winona Ryder. And many simply want a luxury item they can't afford. After speaking with dozens of admitted shoplifters, Shteir concludes that there are no easy answers, and offers this insight:

"Many shoplifters see themselves as escape artists, stealing out of inscrutable cravings and unexamined desires. Having lost their old solaces, people shoplift as an anodyne against grief or to avenge themselves against uncontrollable forces or as an act of social aggression, to hurl themselves away from their identities as almost-have-nots. Whatever form shoplifting takes, it is as difficult to stamp out as oil spills or alcoholism." - excerpted from The Steal: A Cultural History of Shoplifting, by Rachel Shteir

Altruistic Reciprocity

Reciprocal Altruism: a behavior whereby an organism acts in a manner that temporarily reduces its fitness while increasing another organism's fitness, with the expectation that the other organism will act in a similar manner at a later time. 

We call it Karma Economics. I've had several discussions lately, with other people, on-line, and in my head. All of these discussions revolve around the idea of creating content for free. The question always comes up, "what's in it for me?" Well, aside from what I see as the obvious benefits - owning the conversation, social capital, being the guy who gets quoted in the media, etc. - I think this idea of altruistic reciprocity has some serious merit. Gift economics doesn't rely on a direct quid-pro-quo, there's no score.

The way I see it, writing a blog post and making it available for publication in other outlets costs me a little bit of time, not much else. If I've done a good job of addressing an issue that is of interest to others, then they receive a benefit. The outlet that publishes my blog post as an article receives the benefit of new content. The only real benefit I get is to be the author of the story and for that I gain a little bit of social capital.

But a better example would be bragging on the competition. The actual cost is similar: just a little bit of time. The potential cost could be substantial. If one brags on the competition, the competition gets the press and a resulting bump in their brand awareness. The person bragging might even lose clients to the person they bragged about. The potential cost of this behavior is high.

Furthermore, there's no direct way to measure ROI for Karma Economics. However, I have seen direct returns on investment through the very simple act of bragging on my fellow professional investigators. We produced a story for Marketplace, the public radio business news magazine, a couple of years ago. In that story, we highlighted a fellow PI. She actually got calls afterwards from prospective clients. The thing she did that was unexpected was refer business to me.

See, while we are both PIs, we focus on different types of investigations. My touting her expertise really didn't hurt my business at all. I gladly brag on my fellow professional investigators, the ones who do exceptional work. Even the ones who are trying to do the exact same type of work that I do, assuming they are amazing. Is there a chance I could lose clients to them? Maybe.

In the long run, though, I think it's a win-win. Either way, I enjoy the writing and like to see other people succeed. If I put a little bit of energy into helping that happen, well...it'll come back someday. I'm not too concerned about it. Karma doesn't seem to worry about the point system.

Economy's Impact on Child Support - Part II

Behind the Scenes of Our Marketplace Story

Close-up of Rhonda Spurlock

An intimidating pile of file folders looms high over attorney Rhonda Spurlock's desk. But that doesn't worry her too much, because she isn't often in her office. She mostly spends her days in any of ten courts in the four Tennessee counties she serves, advocating for the scores of moms and dads that imposing stack of folders represents, chipping away at her swelling case load.

Spurlock is head litigator for her district's Child Support Office, a free state service that helps parents sort out their child support agreements. Although she does handle contempt and enforcement actions, she says her agency is "non-custodial-parent friendly."

"Our goal is to collect money so these families can have income to buy food, basic necessities for their children," she says. And that goal has become far more challenging in this economic climate. 

"A lot of parents, are frustrated and stressed out. This is a trying time. And when you’re dealing with children and money and a bad economy, it evokes a lot of anger and frustration in parents. I don’t want to add to that agitation."

No one is immune to the economic downturn, says Spurlock. She has seen struggling parents along every part of the income spectrum, from laid-off factory workers in Perry Co. (with one of the highest unemployment rates in the nation) to downsized Dell and former GM employees, to bankers and executives in Williamson Co. (one of the wealthiest counties in the U.S.): "People who were previously earning from $5,000 to $10,000 (or) $15,000 a month, now who are out of work," she says. "One problem is they’re in denial that the economy will or will not get better, and they are hesitant to seek jobs in lower paying positions...And that is a big problem."

"I don’t believe a lot of people have accepted that their particular industry may not get better for a long time," she adds.

Which explains all those folders on Spurlock's desk, many of them requests from parents (who have been laid off or seen a big cut in their income) to modify the amount of child support they pay or receive. "Our modification case load has almost tripled," she says.

"Where that has been essential is for people who have been laid off, and now they’re on unemployment benefits," she says. "So if they were making $5,000, now they’re making $1,191.67  from unemployment income, and they’re gonna be asking for immediate relief because their income has drastically been reduced." But even unemployed parents have to pay something, she points out. She's empowered to give relief, but not to suspend payments altogether. "Well, your child doesn’t have that choice," she says.

A few statistics tell the story: Spurlock says her counties have seen a 6.97 decrease in child support collections since last year, and Tennessee is down 8.8 percent overall. "And that is a huge reduction in collections," she says. "...Every month this year, every county’s collections have gone down."

Spend a few minutes with Spurlock in her modest office, and a picture emerges: of a modest and practical crusader who's found her life's work and whose compassion extends to custodial and non-custodial parents alike. And she hates the term "deadbeat dads." It ignores the fact that close to forty percent of these non-custodial parents are moms, for one. "(And it's) not a fair label because a lot of people are trying, and I think that unfairly categorizes them. That’s like saying all lawyers are bad. There are some good ones in the bunch," she smiles. 

"(It's) one of those jobs you either love or hate," adds Spurlock. "You have to really care about people," she says. "I don’t represent either party, so I can step back and decide what’s best for the child."

Spurlock echoes Judge Smith's advice to parents facing job losses and increasing difficulty meeting their child support obligations: "Take action immediately to ask that your court order be reviewed," she says. "DO NOT just stop paying child support altogether...Don't wait until your unemployment runs out six months later and you're in a bind."

She also suggests that parents keep a record of where they're looking for jobs -- copies of applications or internet searches -- so they can prove they are seeking work in earnest.  -KDG

Go to Part I.

Second "Marketplace" Story Airs

The second installment of our continuing series for "Marketplace" (American Public Media's nationally syndicated public radio program on business) aired on Tuesday, December 8. Marketplace asked Nashville private investigator Thomas H. Humphreys to look into the economy's impact on child support collections. Humphreys turned to Nashville Fourth Circuit Court Judge Philip Smith, Child Support Services litigator Rhonda Spurlock, and our esteemed colleague, expert PI Renee Waters for expertise. 

To find out how single parents are faring in this economy, where jobless dads and moms can turn for help, and to hear the moving story of how one deadbeat dad inspired Waters' life work, visit the Marketplace online archive, where you can listen to the story or read a transcript. 

*And if you love the swingy PI theme song that accompanies the piece, go see our composer Andy Schienman's website and hear more of his work.

First "Marketplace" radio story airs

The first installment of our Marketplace public radio series as told by Nashville Private Investigator Thomas H. Humphreys aired on Monday, October 19. [FIND] Investigations looked into the economy's effect on petty thievery and shoplifting in several Nashville neighborhoods...and uncovered an unexpected twist to the story. You can listen to the archived piece and read a transcript here at Marketplace's website. Look for Part 2 sometime next month!

Special thanks go out to Andy Schienman for composing the absolutely fabulous music for the piece and to the brilliant Molly Jamieson for brainstorming titles and concepts and for encouraging us to go forth and be creative with it.