The economic approach assumes that most criminals are rational decisionmakers who would be deterred from committing additional crimes by an increase in expected punishment, which is determined by the probability of arrest and conviction and the size of the penalty. This approach dates from the 18th Century, and contrasts from the dominant view that focuses on genetics, the family, low intelligence, and mental illness as the main crime causes. Economists explain the correlation between crime and such factors by arguing that many of these factors make the individual concerned more suited to a life of crime than to alternative legitimate careers. In addition, most data cited to support the view that penalties do not deter are based on poor statistical analyses. Australia's crime rate can be reduced by increasing the use of private police and security services, encouraging the use of alarms and neighborhood watch programs, using improved forensic technologies, and increasing penalties. However, imprisonment is often not the best form of punishment. Instead, fines and alternatives such as electronic surveillance should be used for nonviolent offenders. Other actions should include legalization and regulation of victimless crimes such as drug use and prostitution, the provision of vouchers to promote greater competition among schools, and privatization in corrections. Figures, index, and 79 references