Earlier quoted context omitted.
I actually don't know if the crime rate in SF is higher than elsewhere, but if it is I think cause is the opposite. It's what happens when capitalism goes unchecked. Cost of living is on the rise while wages are stagnant. Crimes are often committed by people who are desperate. Also there are no facilities for people who are mentally ill, who will go on to commit crimes.
Capitalism isn't what's happening in SF. NIMBYism, cronyism, inability to build, tons of regulatory red tape to do anything, high taxes, etc. is not capitalism.
If you expect people to live by the rules, they should have a honest opportunity to do so. But if all they can get is a job that doesn't even pay for a small room, what are your possibilities to live a honest live?
If you remove punishment, but the only option people have is to break the law to survive, the only outcome to be expected is increased number of crimes.