[petestream]

As far as I know one of the arguments for defunding the police is that the police is used as a way for those with the ability to change things to externalize the consequences of their actions.

When for example a lack of housing leads to an increase in crime a well funded police prevents those who could increase housing from being affected by the crime and they will therefor not increase housing. Especially as they get many benefits from poverty like cheap labour, a decrease in competition and larger premiums on attractive real estate.

So yes I would say they are thinking about the second-order effects. At some point I might read some of Thomas Sowell's writings but from what I've seen so far he honestly seems more of a theologist than a scientist to me.