GDP and the rate of predation: Why can't we protect ALL of the innocent?

In criminal law, Blackstone's ratio is the idea that:
It is better that ten guilty persons escape than that one innocent suffer.
In practice, 2% - 10% might be the ratio of innocent people in US prisons.

Some people argue that any innocent people punished are too many, and that if we can't guarantee anyone is 100% guilty, we should let all the guilty walk free.

Such a policy produces an impoverished society rife with unsolved problems and limited prosperity.

High GDP requires people to transact. People transact if they are confident in transaction safety. If people aren't confident, they second-guess every transaction and divert significant resources into individual security. The result are countries with low GDP, lots of corruption, backstabbing and poverty combined with barbed-wire fences and barred windows.

Residents of high-GDP countries cannot imagine this, but countries with such quality of living do exist, and they are in fact a majority of low-GDP countries.

To give people confidence to transact, bad actors must be eliminated to such an extent that predatory transactions are exceptional. If they occur, the victim has to be confident there's a strong chance of effectively punishing the offender.

This determines the GDP potential of a country, which is necessary to escape the tyranny of poverty. The goal of criminal justice therefore cannot be to minimize the number of wrongly punished. The goal must be to minimize the sum of { transactions prevented due to fear of predators } + { transactions prevented due to fear of wrongful punishment }.

This means the number of wrongly punished has to be kept reasonable, but it cannot be the sole target of optimization. If you can get 10 guilty people for the price of punishing 1 innocent one, that's a good deal. If you optimize too much toward protecting the innocent, the guilty people that you let escape can put the whole country in a prison of poverty.

Further, this is why current anonymous cryptocurrencies are penny-smart, pound-foolish. They enable predators and bring lawlessness into money. This discourages transactions due to fear of loss and balloons inefficient investments into individual safety. The only way cryptocurrencies can be advantageous is if they somehow enable a greater number of transactions than are otherwise currently possible, which is a feat not yet achieved (but it could be).

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