The spread of coronavirus disease is shaking up the global economy and will almost inevitably lead to a new recession. On 16th March, the Dow Jones reached a new record, losing 2,997.10 points to close at 20,188.52, which is considered the biggest drop on record in the history of the United States. Statistics show that economic factors often led to higher unemployment rates, which had a negative impact on career paths, especially among young people. As a result, criminal activities, including car theft and car burglaries, are among the most frequently observed crime phenomena that occur in times of recession.
The brief analysis below shows the dynamics of car theft trends during the major economic downturns of the last 35 years.
Car thefts and economic downturn in 1987
October 1987 was marked by a stock market crash (Black Monday, October 19, 1987), the greatest single-day loss the Wall Street had ever recorded. The crash resulted in major negative consequences worldwide and led to a significant decline in all major world markets. Besides, it had an enormous impact on the increase in car thefts, with the highest rate being recorded in densely populated areas.
According to the Uniiform Crime Reports for the United States, the number of motor vehicle thefts increased by 5% in the USA from 1986-1987 and caused an estimated national loss of over $6 billion. The rate was 23 % higher than in 1983 and 15% above the rate recorded in 1978.
Car thefts and economic downturn in 2001
The recession in 2001 was partly caused by a boom (linked to the Y2K scare) and the collapse of the dot-com business, followed by the 9/11 attack that made the situation even worse. This led to an increase in the unemployment rate which reached the peak in 2003.
According to the FBI data report, the vehicle theft rate increased by 1.4% in the USA between 2001 and 2002 and the highest crime rate was detected in urban areas.
Crime rate and economic downturn during the global financial crisis of 2007-2008
The global financial crisis (2007-2008) is considered the worst financial crisis since the Great Depression of the 1930s and was caused by deregulation in the financial industry in connexion with real estate transactions. The crises lasted 1.5 years and caused political instability and prolonged unemployment. This resulted in the rash of car theft and car break-ins in a number of countries worldwide (see the chart for Mexico below).
How CarLock can help in these times of uncertainty
In these uncertain times, CarLock can be of great help in vehicle protection, especially if a car is parked for a prolonged period of time in a dangerous area with a generally high crime rate. It provides advanced car security features and notifies car owners via the app on their phones if any unusual activity is detected on a car, allowing them to react immediately. CarLock is a simple plug-and-play product and does not require any professional tools to be installed.
Get CarLock HERE.