It's not that simple. Shrinkage leads to higher operating costs & higher prices. If a pharmacy experiences so much theft that it can no longer operate at a profit, then it has to close -- & when neighborhoods no longer have groceries & pharmacies, it puts human lives in jeopardy.
The past twenty-five years proves you dead wrong on your last 2 points. I'll agree with you that we incarcerate too many criminals & criminalize some of the wrong things. But that doesn't mean we should adopt a pro-theft position as you do, & dispense with law & order altogether.
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