Gun violence is a devastating issue in the United States, claiming approximately 40,000 lives each year and injuring twice as many. Beyond the immense human toll, the economic impact is staggering, costing the nation an estimated $557 billion annually—equivalent to 2.6% of the Gross Domestic Product (GDP) according to studies by Everytown Research. These costs span healthcare, legal liabilities, operational disruptions, and immeasurable social repercussions, impacting individuals, communities, and industries alike.
While the cost to losing even a single life to gun violence is immeasurable, this post examines the operational, legal, and social costs of gun violence, highlighting specific examples of its economic burden.
The Economic Burden of Gun Violence
A closer look at the Everytown Research study into gun violence costs can be divided into five major categories with a sixth from The Urban Institute:
- Employer Costs:
Employers collectively face over $500 million in annual costs due to lost revenue and productivity, as gun violence disrupts workplaces and impacts employee well-being. Legal liability is also a growing risk for organizations as the shift in duty of care is changing as gun violence grows and becomes more commonplace. For example, MGM Resorts International settled for $800 million after the 2017 Las Vegas shooting, highlighting the financial stakes for businesses failing to implement reasonable safety measures. Proactively adopting training, early-warning systems, and violence prevention protocols can help mitigate these risks. - Work-Loss Costs:
Victim deaths, injuries, caregiver work losses, and perpetrator incarceration result in $53.8 billion in lost income each year. This includes lost productivity and financial strain on families who rely on the income of gun violence victims. - Medical Costs:
Immediate and long-term medical care, mental health support, and emergency transport services for victims amount to $2.8 billion annually. Hospitals and healthcare systems bear the brunt of these costs, with Medicaid and public programs covering a significant portion. - Police and Criminal Justice Costs:
The police response, investigations, court processes, and incarceration costs related to gun violence total $11 billion annually. These expenses strain local government resources and divert funds from other critical areas like education and infrastructure. - Quality-of-Life Costs:
Perhaps the most staggering, $489.1 billion annually represents the value of pain, suffering, and reduced well-being endured by victims and their families. This figure underscores the profound and often immeasurable toll gun violence takes on individuals and communities. - Community Impact:
Gun violence detrimentally affects local economies, hindering business growth and property values as indicated in new research by The Urban Institute. In Washington, D.C., for every 10 fewer incidents of gunfire in an area, there will be one new business opening, the creation of 20 more jobs in new businesses, and $1.3 million more in sales at these new businesses. Conversely, higher levels of gun violence are associated with fewer retail and service establishments, fewer new jobs, and slower home value appreciation.
Retail: A Growing Target of Gun Violence
- Operational Costs: The 2022 mass shooting at Tops Friendly Markets in Buffalo, New York, resulted in a two-month closure. According to FMI Food Industry Organization, the average U.S. supermarket generates over $600,000 in weekly sales. The Tops closure likely resulted in lost revenue of approximately $5 million. The closures also have a profound impact on employees due to lost wages.
- Legal Costs: Walmart’s El Paso, Texas shooting in 2019 led to multiple lawsuits alleging insufficient security measures. These legal battles carry significant financial and reputational costs.
- Social Impact: The closure of Tops Friendly Markets also created a food desert in East Buffalo, a community already struggling with limited access to fresh and affordable groceries. As the only grocery store in the area, the closure left residents without convenient options for essential food items, further exacerbating economic and health disparities in the neighborhood.
K-12 Education: Schools are Still a Target
- Operational Costs: Rebuilding schools after shootings imposes significant financial burdens on communities. For example, the construction of a new Sandy Hook Elementary School following the 2012 tragedy cost approximately $50 million, funded by the state of Connecticut. Similarly, after the 2022 Uvalde shooting, $10 million was pledged toward replacing Robb Elementary School to help the community recover.
- Legal Costs: Following the Uvalde tragedy, a lawsuit was filed by victims’ families against various entities, including the school district, law enforcement, and firearm manufacturers which ultimately settled for $2M.
- Social Impact: Students and staff exposed to gun violence suffer long-term psychological effects. In areas affected by school shootings, antidepressant use among youth increased by 21%.
Healthcare: Facilities on the Frontlines of Violence
- Operational Costs: Acts of violence within healthcare facilities disrupt essential services, forcing closures, patient diversions, and delays in care. For instance, the shooting at Northside Hospital in Midtown Atlanta in 2023 resulted in a multi-day closure, delaying treatments and forcing patient redirection.
- Legal Costs: Hospitals can face substantial legal liabilities following acts of violence. The family of a security guard fatally shot at Legacy Good Samaritan Medical Center in Portland filed a $35 million lawsuit, alleging inadequate measures contributed to the tragedy.
- Social Impact: Healthcare workers disproportionately face workplace violence, with gun violence exacerbating psychological tolls. Exposure to violent incidents often results in PTSD, burnout, and increased turnover among medical professionals.
A Path Forward: Proactive Prevention with Omnilert
While the costs of gun violence are immense, solutions exist to help mitigate these impacts through a multi-layered approach of education, preparation and technology. Omnilert empowers organizations to save lives and reduce the operational, legal, and social costs of gun violence. By using visual artificial intelligence to transform passive security systems into early warning and active prevention systems, Omnilert helps:
- Reduce Operational Disruptions: AI-powered gun detection systems can identify firearms in real time, alerting security teams instantly and allowing for swift, coordinated responses. This reduces downtime and helps businesses, schools, and healthcare facilities resume operations quickly after an incident.
- Minimize Legal Risks: Proactive systems demonstrate a commitment to safety, potentially reducing liability in the event of lawsuits. Organizations equipped with advanced security measures are better positioned to defend against claims of negligence.
- Address Social Costs: By preventing incidents before they escalate, Omnilert’s solutions protect lives and reduce the long-term trauma associated with gun violence, fostering safer and healthier communities.
Gun violence presents a profound challenge to the U.S. economy, imposing significant costs on individuals, industries, and society. By addressing operational, legal, and social costs, innovative technologies like Omnilert offer a path forward, empowering organizations to protect lives and resources alike.
The time to act is now. Investing in proactive prevention systems not only saves lives but also alleviates the immense financial burden gun violence imposes on our economy. Together, we can transform how we approach security, making our schools, workplaces, and communities safer for all.
Contact us today to learn more.
