The beginning of the privatization of prisons began in 1980s when there was an influx of prisoners within public prisons. The overcrowding began when private contractors advised state enforcement to foster more legislation that would incarcerate more people.
This led to an increase in prison population during the Clinton era. State and local governments passed “tough-on-crime” laws in numerous states. In California, for example, one of the tough-on-crime laws that were passed was the “Three Strikes” law. The three strikes law called for mandatory sentencing of repeat offenders. New York had another similar law, called the “Broken Windows” strategy, that called for the arrest and prosecution of all crimes, minor or major. This began the era of privatization.
As of now, according to the Left Business Observer, one in every hundred people in America is incarcerated. This leaves the United States with a prison population of 2 million prisoners, putting the U.S. at the top for the highest prison population in this world’s history. The private prison industry is what is truly driving the incarceration rates through the roof. One would find this shocking, due to the fact that this industry is not a day older than 40 years old. How could an industry so young, be so strong? Simple answer: it is profit-driven.
The private prison industry is mostly dominated by the CCA, Corrections Corporation of America, and the GEO Group Incorporation. According to the Centre for Research on Globalization, less than 10 years ago, there were only five private prisons, in the United States, holding 2,000 inmates. This number has risen dramatically. As of now there are over 100 private prisons holding over 60,000 inmates. Analysts have concluded that in the coming decade, the number will hit 360,000, only causing for the creation of more private prisons.
This led to an increase in prison population during the Clinton era. State and local governments passed “tough-on-crime” laws in numerous states. In California, for example, one of the tough-on-crime laws that were passed was the “Three Strikes” law. The three strikes law called for mandatory sentencing of repeat offenders. New York had another similar law, called the “Broken Windows” strategy, that called for the arrest and prosecution of all crimes, minor or major. This began the era of privatization.
As of now, according to the Left Business Observer, one in every hundred people in America is incarcerated. This leaves the United States with a prison population of 2 million prisoners, putting the U.S. at the top for the highest prison population in this world’s history. The private prison industry is what is truly driving the incarceration rates through the roof. One would find this shocking, due to the fact that this industry is not a day older than 40 years old. How could an industry so young, be so strong? Simple answer: it is profit-driven.
The private prison industry is mostly dominated by the CCA, Corrections Corporation of America, and the GEO Group Incorporation. According to the Centre for Research on Globalization, less than 10 years ago, there were only five private prisons, in the United States, holding 2,000 inmates. This number has risen dramatically. As of now there are over 100 private prisons holding over 60,000 inmates. Analysts have concluded that in the coming decade, the number will hit 360,000, only causing for the creation of more private prisons.
The concept of prisons was to rehabilitate criminals so that after they served their time, they were society ready citizens that had the capability to give back to the communities in which they resided in. Instead, the prison industry has become one of the most fastest-growing industries the United States, and Wall Street investors, have ever seen. According to California Prison Focus, “This multimillion-dollar industry has its own trade exhibitions, conventions, websites, and mail-order/Internet catalogs. It also has direct advertising campaigns, architecture companies, construction companies, investment houses on Wall Street, plumbing supply companies, food supply companies, armed security, and padded cells in a large variety of colors.” None of these profit-motivated initiatives change as the crime rate decreases.
According to the Human Rights Campaign, as the crime rate decreases, the prison population continues to rise. This is due to the fact that the CCA and the GEO Group have investors who funnel money into private prisons so that the labor for their company is completed in a cheap and timely manner. Investors don’t have to worry about strikes or paying unemployment insurance, vacations or comp time. Moreover, if their private prison workers, don’t like the pay of 25 cents an hour and refuse to work, they are locked up in isolation cells. A study done by the Progressive Labor Party,” the private contracting of prisoners for work fosters incentives to lock people up. Prisons depend on this income. Corporate stockholders who make money off prisoners’ work lobby for longer sentences, in order to expand their workforce.
According to the Justice Policy Institute, CCA and the GEO corporation spend millions of dollars annually lobbying for tough on crime laws, mandatory minimum sentencing, and life without parole sentences. Legislations, like Senate Bill 1070, are the reason the United States has so many people in prison. Prison corporations make money off of mass incarceration. In a 2010 Annual Report filed with the Securities and Exchange Commission, CCA, the largest private prison company, stated: "The demand for our facilities and services could be adversely affected by ... leniency in conviction or parole standards and sentencing practices..." These companies are not interested in reforms that would reduce the prison population. Instead private prison corporations, spend millions of dollars to push tough-on-crime and mandatory minimum sentencing legislation that has wrecked havoc on poor communities and proliferated the cycle of poverty.
This type of capitalistic system does not work in benefit of the American people or democracy the founders of our country worked for. The economics of the private prison industry is a great indicator that displays that capitalism and democracy cannot coexist, only one thrive. In this case, capitalism is thriving and continues to place many impoverished communities at risk, specifically through the private prison industry.
According to the Human Rights Campaign, as the crime rate decreases, the prison population continues to rise. This is due to the fact that the CCA and the GEO Group have investors who funnel money into private prisons so that the labor for their company is completed in a cheap and timely manner. Investors don’t have to worry about strikes or paying unemployment insurance, vacations or comp time. Moreover, if their private prison workers, don’t like the pay of 25 cents an hour and refuse to work, they are locked up in isolation cells. A study done by the Progressive Labor Party,” the private contracting of prisoners for work fosters incentives to lock people up. Prisons depend on this income. Corporate stockholders who make money off prisoners’ work lobby for longer sentences, in order to expand their workforce.
According to the Justice Policy Institute, CCA and the GEO corporation spend millions of dollars annually lobbying for tough on crime laws, mandatory minimum sentencing, and life without parole sentences. Legislations, like Senate Bill 1070, are the reason the United States has so many people in prison. Prison corporations make money off of mass incarceration. In a 2010 Annual Report filed with the Securities and Exchange Commission, CCA, the largest private prison company, stated: "The demand for our facilities and services could be adversely affected by ... leniency in conviction or parole standards and sentencing practices..." These companies are not interested in reforms that would reduce the prison population. Instead private prison corporations, spend millions of dollars to push tough-on-crime and mandatory minimum sentencing legislation that has wrecked havoc on poor communities and proliferated the cycle of poverty.
This type of capitalistic system does not work in benefit of the American people or democracy the founders of our country worked for. The economics of the private prison industry is a great indicator that displays that capitalism and democracy cannot coexist, only one thrive. In this case, capitalism is thriving and continues to place many impoverished communities at risk, specifically through the private prison industry.