Felix Salmon wonders about the "Broken Windows" theory.
My own take on why Broken Windows does in fact work refers back to Jane Jacobs' "eyes on the street" policing. (And the symmetry between windows being repaired and eyes looking through windows is not just a coincidence.)
Fixing broken windows is a sign that people are watching and care and will call the cops. It demonstrates that attention is being paid and that people will respond to bad acts. "Fixing things" acts as a territorial marker. It says that this ground is claimed and a vandal will be challenged and confronted. "Fixing broken windows" is non-verbal but so is vandalism.
Look at it from yet another perspective: is it an appropriate practice for commercial property management? Is it effective? Does it make sense? Yes, if for no other reason than quickly making repairs sends a message to the police that owners in an area care for their property, take what care they can and will appreciate police help. More importantly, what's the alternative? Leave the windows broken? Resistance to vandalism through repair is essential unless one is willing to cede an area.

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