I used to work in retail, and I was surprised at how common mall theft is. I would often find sensors that had been broken off of clothing to avoid setting the alarm off, and sometimes people would simply grab products close to the door and bolt away. Although theft was common, we used a lot of resources and energy trying to prevent it. For example, we put sensors on every single clothing item which we then had to remove later when the product was purchased. Additionally, money was spent on locks, an alarm system, and the mall security guards.
Tullock would argue that trying to prevent theft is a form of rent seeking. When the managers called the security guards, they were wasting time that could have otherwise been put towards selling more products to customers. The security guards also could have been employed in another industry where they could add value and productivity. The money spent on the sensors, locks, and alarm system is another resource that was diverted away from other potential uses, according to Tullock. The efforts to prevent theft initially made sense to me because the store loses money when items are stolen, but Tullock would say that the store is actually expending even more resources trying to prevent the theft. For him, theft without any prevention efforts is simply a redistribution of wealth. However, when stores use resources like alarms and sensors this becomes a socially wasteful activity.
