TESTIMONY BEFORE THE SUBCOMMITTEE INDICATES THAT CRIME AND SOCIAL DEVIANCE ARE ROOTED IN ECONOMIC CIRCUMSTANCES SUCH AS UNEMPLOYMENT, POVERTY, AND OVERCROWDED HOUSING. AN EXAMINATION OF THE INTERACTION BETWEEN ECONOMICS AND CRIMINOLOGY REVEALS THAT CRIMINAL BEHAVIOR MAY BE EXPLAINED WITHIN A SOCIETY AS A FUNCTION OF THE CYCLE OF INFLATION AND RECESSION. PROFESSIONALS IN BOTH DISCIPLINES, HOWEVER, ACKNOWLEDGE THE INADEQUACY OF THEIR PROPOSALS TO IMPROVE SOCIAL CONDITIONS. PSEUDOSOLUTIONS SUCH AS BALANCING THE FEDERAL BUDGET AND OFFERING GENETIC EXPLANATIONS OF CRIME ARE UNFORTUNATE ATTEMPTS TO SOLVE THE PROBLEM. BOTH PROFESSIONS SHOULD BECOME INVOLVED IN PUBLIC POLICY AND RESEARCH THAT CONTRIBUTES TO THE SOLUTION OF POLICY ISSUES. THE EFFORTS OF LEAA SHOULD NOT BE DIVERTED INTO PERIPHERAL AREAS BUT SHOULD FOCUS ON POLICY MATTERS SUCH AS THE DETERRENCE VALUE OF INCARCERATION AND THE RELATION BETWEEN UNEMPLOYMENT AND CRIME. THE IMPACT OF LEAA HAS NOT BEEN ADEQUATELY EXAMINED, ALTHOUGH THE 96TH CONGRESS WILL BE ASKED TO REAUTHORIZE THIS AGENCY. (TWK).